guarantee and other security and hedging instruments
We prepare expert opinions to determine the value of guarantee or other security and hedging instruments. An expert opinion on the valuation of guarantee is often requiered by financial institutions which provide guarantee to enterprise group. We prepare the valuation of guarantee in cases of guarantee or pledging other types of security between related parties, especially with regard to legislative requirements for determing usual price when providing security instruments (see financial assistance) and the requirements persuant to § 23 Paragraph 7 of Act No. 586/1992 Coll., on Income Taxes.
In case of determining the value of guarantee, we can offer valuations using methods that are either simple (for guarantee with small
amounts) or precise and complex (options, synthetic ratings) for guarantee with large amounts. We are also able to determine the value of guarantee or the remuneration for providing guarantee (or other security instruments) in case of more guarantors so that the proportional distribution between them is fair. In many cases, we also conduct probabilistic economic analyses, in which we, for instance, assess the credit rating of a debtor, which is related to his or her potential failure to repay a loan – default risk – or the loss of a guarantor if the debtor fails to repay the loan – loss given default.