Portfolio Valuation and Risk Assessment

Current market conditions make it difficult for organizations to understand the risks they hold, the value of their complex assets and the principal losses they might experience over time.

  • Unprecedented market liquidity premiums have disassociated pricing patterns from predicted credit performance
  • Traditional external pricing sources have been disrupted and may not be providing the consultative support financial institutions often require
  • A "second pair of eyes" to review and rationalize findings is valuable given the current regulatory environment

The Financial Markets Advisory practice helps clients value and understand the risk of complex portfolios - and provides actionable solutions for surveillance and management strategies.


Deliverables under representative engagements have included estimates of:

  • Fair value
  • Intrinsic value
  • Projection of principal losses
  • Counterparty risk assessment
  • Rating migration
  • Cash flow
  • Discounted cash flow

We provide clients with comprehensive valuation and loss projection analyses through a unique combination of BlackRock Solutions' best-in-class financial models and market intelligence gathered by experienced FMA portfolio managers. We consider our valuation and risk assessment engagements as having both analytical and consultative components.

Analyses are produced at the security and loan level and aggregated on a portfolio basis to help clients thematically understand their exposures on several levels.