3 thoughts on “The maths of NAMA-type valuations”

  1. Jacco Thijssen uses geometric Brownian motion for convenience and this assumes that the growth rate for the profitability of the distressed asset is constant. This is like coming up with the perfect theory on distressed asset valuations and then saying, by the way, all my calculations are based on assumptions which simply do not exist in the REAL WORLD!

    Fascinating stuff, no doubt, for mathematical nerds but not really of any interest to a tax payer who wants to know how big the Lenihan NAMA bill is going to be for his grandchildren and great grandchildren.

    Somewhere between the legal problems and the mathematical quantum physics models of asset valuations, lies the obvious fact, that NAMA will not work. The only hope is that in the white heat of NAMA failure Irish society will be forced to implement our constitution which currently lies in tatters.

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