Two new reports on hedge fund portfolio valuation principles were recently published just as global markets were being tossed around by events such as the U.S. mortgage industry credit concerns.
Investors fear that the meltdown in the subprime mortgage market could affect mortgage-backed securities, along with their related credit default obligations, credit default swaps and other derivatives in which hedge funds are among the most important players (see “Caging Contagion,” page 68).
