A valuer is a qualified individual who is responsible for determining the fair value of the underlying assets. In Australian English, a valuer is sometimes referred to as an "appraiser" or a "valuator".
The valuer will typically review the following factors when valuing the underlying assets:
- The quality of the underlying assets
- The credit history of the borrowers
- The interest rate environment
- The prepayment risk
- The liquidity of the underlying assets
The valuer will then determine the fair value of the underlying assets by using a variety of valuation methods, such as cash flow discounting, Monte Carlo simulation, or credit scoring.
Here are some of the applications of a valuer in securitisation:
- To determine the fair value of the underlying assets: The valuer's determination of the fair value of the underlying assets will be used to determine the price of the securitisation.
- To assess the risk of the securitisation: The valuer's assessment of the risk of the underlying assets will help investors to determine whether or not to invest in the securitisation.
- To manage the securitisation: The valuer's work can help to manage the securitisation by identifying areas where the securitisation is exposed to risk.
A valuer is a valuable tool for securitisation. They help to ensure that the securitisation is priced correctly and that the risk of the securitisation is managed.
A valuer is sometimes referred to as an "appraiser" or a "valuator".