# kaal:claim:1428387-002

**Claim.** Broker quotes are an unreliable fallback for valuation: they can be hard to obtain and can vary by 20 to 30 percent for instruments such as mortgage-backed securities, which makes accurate valuation of those securities difficult.

**Type.** failure  **Support.** asserted

**Holds when.**

- where recent transaction prices and marketable bids and offers are not readily available

**Source quote.**

> In addition, broker quotes may be difficult to obtain and can be quite unreliable—mortgage-backed securities, for example, can sometimes vary by 20 to 30 percent—making accurate valuation of these securities difficult.

**From.** Kaal, *Hedge Fund Valuation Retailization, Regulation, and Investor Suitability* (2009), I. Introduction, page 2

**Cite as.** Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

**Verify.** sha256 of source PDF `6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202009%20-%20Hedge%20Fund%20Valuation%20Retailization%2C%20Regulation%2C%20and%20Investor%20Suitability.pdf

**Failure mode.** unreliable-broker-quotes  (family: valuation-and-pricing-failure)

**Topics.** securities-law, economics

**Keywords.** broker-quotes, mortgage-backed-securities, valuation-error, price-discovery

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.