FTI Treasury Talks: Independent Valuation of Debt and Derivatives
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About this Episode
In this episode of FTI Treasury Talks: Conversations with the Experts, we explore the importance of independent valuation of debt and derivative instruments—a cornerstone of financial integrity in today’s complex and highly regulated markets.
FTI Treasury experts Marie Clarke, Head of Finance, and Marie Gaynor, Middle Office Manager, share their insights into why independence and transparency are critical, the key components of robust valuation practices, and common challenges faced by organizations.
The discussion highlights how independent valuation strengthens credibility with auditors and regulators, supports compliance, mitigates risk, and provides valuable insights for confident, informed decision-making. This session is particularly relevant for professionals involved in treasury, risk management, financial reporting, governance, and transaction advisory.
Key Topics Covered
- What Independent Valuation Is
Explanation of mark-to-market valuation — determining the fair value of debt and derivative instruments based on current market conditions rather than historical cost. - Why Independence and Transparency Matter
The limitations of relying solely on counterparty (bank) valuations and the value of independent verification for credibility with auditors, regulators, and internal stakeholders. - Components of a Robust Valuation Practice
Discussion on essential inputs and market data — yield curves, FX rates, interest rates, credit spreads — and how robust systems allow treasury teams to understand valuation drivers at a granular level. - Challenges and Best Practices
Common challenges in valuation practices and industry best practices for ensuring accuracy, transparency, and reliability of valuations across reporting cycles. - Strategic Value Beyond Compliance
How independent valuation supports financial reporting, risk management, forecasting, and strategic decision-making.
Independent valuation specialists bring technical expertise in handling complex instruments, enhancing credibility with auditors and regulators and enabling organisations to:
Why Independent Valuation Matters
- Validate and challenge counterparty valuations
- Mitigate valuation risk
- Improve transparency and governance
- Support informed and defensible decision-making
This session highlights how independent valuation not only fulfills compliance obligations but also elevates treasury’s strategic contribution to the business.
Guest / Speakers
Marie Clarke
Marie Gaynor
Key Topics covered
Why this matters
For any organization managing debt and derivative instruments, the numbers reported are only as trustworthy as the process behind them. Relying solely on counterparty valuations leaves treasury teams exposed, since banks value positions from their own perspective and with their own assumptions. Independent valuation closes that gap by verifying and, where necessary, challenging those figures, giving finance leaders confidence that what appears on the balance sheet reflects true market value.
That independence carries real weight with auditors and regulators. Being able to show a transparent, well-documented valuation process strengthens credibility during audits, supports compliance, and reduces the risk of restatements or disputes over fair value. It signals that the organization understands its exposures rather than accepting third-party numbers at face value.
The benefits also extend well beyond compliance. Accurate, independent valuations feed directly into financial reporting, risk management, and forecasting, helping treasury teams see the drivers behind their positions and make informed, defensible decisions. In practice, independent valuation turns a regulatory requirement into a source of insight, raising treasury’s strategic contribution to the wider business.
About FTI Treasury Talks
Expert conversations on treasury management, risk, technology, and in-house banking — designed for treasury professionals, CFOs, and finance leaders.
