The valuation conundrum


Managers throw up their hands, mark to model and smooth out returns; are they all attempts to avoid the problem?

By Julie Dalla-Costa

When JPMorgan Chase, Citigroup and Bank of America last month announced a plan to bail out the structured investment vehicles that are at the core of the credit freeze, one might have expected the markets to take heart. After all, the $400 billion in SIV assets are possibly the biggest weight on the credit markets. If the banks weren't forced to sell these assets into the secondary market or write them down