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Merrill said it marked its CDO holdings to "observable" market values, where there were prices to be observed.
Category 1 includes assets with easily observable market values.
The Treasury will use observable market prices for listed warrants and comparable securities where available.
And he spoke favorably of nascent efforts to supplant Libor with benchmarks that are based on an "observable market rate".
In a market where there are observable market values, the S.E.C. might want to ask how such disparities come to exist.
But investors remain unnerved by Lehman's valuing of so-called level three assets, for which there is not an observable market price.
Similar(41)
That said, a reform of Chile's stamp tax in 2002, which allowed the cost to be spread over several issues, appears to have given the commercial-paper market a healthy fillip.Secondary-market liquidity is critical, since it allows investors to buy and sell whenever they want at an observable, market-set price.
Category 2 is a little fuzzier, where there are observable markets that provide a good guide to prices of your asset, even though there is no direct market.
While women are more qualified than men in observable labor market characteristics, they end up earning less.
The system could go "from what is essentially a reported rate to an observable rate, market rate… but Libor is very deeply ingrained in many contracts so it won't be easy," he said.
Because the "true" REDD effort is poorly observable, individual market agents are inclined to use the information asymmetry to over-report on their individual efforts and the easiest way to inflate reported efforts is to increase the RL.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com