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Fair Value

Fair value is an estimate of what an asset or financial instrument is worth under current market conditions using an appropriate valuation approach. It may be based on observable market prices, comparable assets, expected cash flows or other valuation methods depending on the investment.

Why it matters to you

Some RWAs do not have a continuously available market price. Understanding how fair value is determined is particularly important for assets such as private credit, real estate and other investments that may trade infrequently.

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