CHAPTER 2. STRUCTURED FINANCE: ISSUES OF VALUATION AND DISCLOSURE
- International Monetary Fund. Monetary and Capital Markets Department
- Published Date:
- April 2008
This chapter focuses on two aspects of structured finance that have contributed fundamentally to the duration and depth of the crisis, namely, the valuation and disclosure of structured finance products. It concludes that the complexity of these products, coupled with weak disclosure, left the system exposed to a funding and confidence crisis. Looking forward, it is likely that structured finance will recover, but that the products will likely be more standardized and transparent to both investors and regulators.