Fair value accounting
I’m suffering a bit from information overload after just getting back from a too-short visit to HK. In response rrp dude’s comment on SFAS 140, I mentioned that some of my old colleagues talked quite a bit about the impending introduction of “fair value accounting”. I won’t pretend to have read it yet (drowning!), but thought I’d point out another interesting article:
Too much information! Hopefully you’re able to keep up better than I am 😮
[Edit: Continuing after having read the article.]
Yikes! That is some wild stuff. My friends and colleagues were certainly concerned about the impending “fair value accounting”, but I don’t think they’ve raised their voices loudly enough. This is some serious stuff coming down the pipeline. I was at the WBS 2nd Fixed-Income Conference in Amsterdam last September and the CDO pricing model sessions were always the mostly lively (and entertaining). Some of the top minds in mathematical finance arguing about the best approach. From where I sat, they all sucked. How on earth is fair value accounting going to work with complex structured finance products like CDOs???