Why not index market value to default rate and adjust quarterly. The rule was meant to prevail in under relatively “normal” conditions. We obviously have a set of extraordinary circumstances, which mark to market tends to exacerbate. Obviously, these financial instruments hold more intrinsic value than they are being compelled to mark to. Let’s get “real”, as was the spirit behind the mark to market initiative from the beginning.
Why not index market value to default rate and adjust quarterly. The rule was meant to prevail in under relatively “normal” conditions. We obviously have a set of extraordinary circumstances, which mark to market tends to exacerbate. Obviously, these financial instruments hold more intrinsic value than they are being compelled to mark to. Let’s get “real”, as was the spirit behind the mark to market initiative from the beginning.
– Bob Burns