mark to model
"Mark to model" is a valuation method used when market prices are not available or reliable, often applied to complex and illiquid assets.
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Definition
C1Accounting
(technical)A method of assigning a value to an asset using financial models instead of market prices.
Example
- The company used mark to model to estimate the value of its private equity shares.
- In the absence of market prices, mark to model was employed to value the distressed debt.
C1Finance
(technical)A process to determine the value of financial instruments based on theoretical models incorporating various assumptions.
Example
- Mark to model is often used for complex derivatives that lack a regular market for accurate pricing.
- The valuation of the asset was performed using mark to model due to its illiquid nature.
Similar
Terms that have similar or relatively close meanings to "mark to model":
mark timedata modelview modelmark outmark upmark to marketmark downfitness model