Complex Financial Instrument Pricing

Unlocking value from your capital structure

The most successful companies strike a balance between risk and return as it relates to capital structure planning and maintenance. Meeting complex Accounting Standards and compliance / valuation requirements for financial instruments is a cost of entry, but implementing best practices to mitigate risk, manage obligations, and measure benefit can take your capital structure to the next level.

We deliver value and peace of mind

At Grant Thornton, the Complex Financial Instrument Pricing team (CFIP) can address your financial instrument valuation and risk management requirements. We can assist with:

• Fair market valuation of financial instruments (such as loans, bonds, and preferred stock), derivatives (such as options, employee stock options, swaps, and forwards/futures), and other complex financial arrangements (such as hybrid or combined instruments),
• Determination of synthetic credit rating and risk-adjusted rates (including the incremental borrowing rate under IFRS 16),
• Hedge effectiveness assessments,
• Credit and counterparty, market risk, and liquidity risk management,
• Stress testing of capital and funding plans, and
• Financial risk strategy, appetite, tolerance, and limits.

Our team is highly qualified

Our team of Chartered Financial Analysts, Certified Public Accountants, Chartered Business Valuators, and Financial Risk Managers have access to advanced tools and techniques (such as Monte Carlo simulation and Binomial lattice methodologies) and have global and diverse industry experience in delivering solutions in capital markets, including in trading, quantitative finance, economics, and the financial risk management domains.