Traded Debt Pricing

Considerations for Applying Secondary Debt Traded Prices in Valuation

It is not uncommon to see the price of traded debt instruments being adopted as benchmarks in valuation. Such benchmarks should be examined where they exist and can be compelling evidence; indeed they have been deemed influential in court-approved restructurings like Schemes of Arrangement. However, valuers should consider the potential limitations associated with these benchmarks when deciding how much weight to place on them in forming conclusions. This report outlines the application of these benchmarks, highlights their potential limitations, and sets out the skills and experience of relevant FTI Consulting experts.

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