No silver bullet for sub-prime valuation challenge

Ongoing problems facing buy-side managers sub-stantially exposed to US sub-prime and other mortgage-backed instruments highlight the need for more effective risk and valuation modelling for illiquid securities, but firms cannot expect quick fixes for such a complex challenge.

A recent report by risk management technology developer RiskMetrics Group, A subprimer on risk, outlines current mortgage-backed market factors impacting hedge fund and investment man-agers, emphasising the link between