Capital Markets Disputes
Today’s participants in the financial markets sector must abide by unprecedented standards of corporate governance, risk management and prudent valuation. This is the case for complex issues, such as a coherent approach to credit valuation adjustments, through to basic procedures which properly implement industry standard valuation for illiquid and unlisted securities. All of this provides fertile soil for disputes and regulatory scrutiny to take root. Navigant works with participants in the financial markets to adapt and respond in this new environment.
Navigant’s capital markets professionals have years of specialised experience in cash and derivative trading, structuring and risk management. We serve banking institutions, insurance companies, pension funds, sovereign wealth funds, corporates and investment managers in two principal areas:
Navigant provides consulting support (including testimonial experts) in litigation and investigations on complex securities and derivatives. Our sophisticated analyses for valuation and quantum disputes have been instrumental in winning arguments in courts and tribunals in the US and the UK.
Examples of our recent work include:
- Producing Monte Carlo analyses to demonstrate potential losses for 10.000 CDO portfolios
- Analysing and reconstructing CDO squared transactions
- Valuing hundreds of exotic OTC derivatives in disputes that cover an array of swaps and options in risk areas such as commodities, foreign exchange, interest rates, equities and credit
- Assessment of claims of breach of mandate and misrepresentation
Credible and independent third party valuation services are vital to meeting the greater transparency and accountability demanded by regulators, investors and auditors. Navigant provides valuation services to fund managers, hedge funds, private equity vehicles, banks and corporates, specializing in the valuation of illiquid and complex securities. Our professionals employ a variety of valuation techniques to value entire businesses, trades within businesses, complex financial instruments, intangible assets and illiquid investments.
Our valuation services include:
- Independent price verification programs for securities (unlisted or listed but illiquid companies), loans and derivatives either for a specific event or on a regular basis
- Evaluating pricing policies, procedures and processes
- Developing and supporting analytics which generate cash flows for complex structured products
- Valuation of hedged or partially hedged portfolios