The Vega team and network of valuation experts use sophisticated statistical and economic tools to analyze and value complex financial instruments including mortgage and other asset-backed securities. Vega’s expertise also extents to the valuation of intellectual property including patents, copyrights and trademarks, and other trade secrets.

Our experts have business experience and technical skills that inform their approach to determining the relevant factors that contribute to value. The combination of these skills allows us to robustly value assets as well as effectively critique opposing expert’s valuation methodologies.

Example Engagements

  • Valuation of Complex Securities: A Vega expert was retained in BlackRock Allocation Target Shares: Series S Portfolio, et al. v. Wells Fargo Bank, N.A. (S.D.N.Y. No. 14-cv-09371) to respond to plaintiffs’ expert’s proposed class-wide damages methodologies. The class of plaintiffs in this case alleged that the indenture trustee was obligated to enforce repurchase of certain loans whose alleged representations and warranties breaches materially and adversely affected the value of the loans.  The Vega expert critiqued the opposing expert’s method of valuing the RMBS tranches through the averaging method and opined that tranche value is a function of bond insurance, interest rate type, spread, credit ratings and macroeconomic conditions, all of which were ignored by plaintiffs’ expert. 

  • Automated Valuation Model (AVM) Rebuttal Analysis: A Vega expert was retained in several cases brought against RMBS depositors and underwriters to address allegations by the opposing expert that loans had inflated appraisal values. The Vega expert’s analyses assessed whether the appraisal values fell within the expected range of values produced by the AVM. 

  • Valuation of Mortgage Loans: A Vega expert was retained for more than a half dozen cases in which trustees alleged that defendant originator failed to cure or repurchase defective loans. As part of this engagement, the Vega expert was retained to assess whether the alleged representation and warranty breaches materially and adversely affected the value of the loans. The expert opined that loan value is a function of a loan’s risk profile and addressed the opposing expert’s claim by quantitatively modeling the risk profile of the individual mortgage loans under different counterfactual scenarios. In one of these cases, Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC (N.Y. Sup. No. 652761/2012) plaintiffs filed a motion to exclude. The analysis performed by the Vega expert withstood the motion to exclude.

  • Patent Valuation: Vega valued the patent for virtual 3D tour technology used by online real estate brokerages. To do so, the Vega team analyzed how the technology contributed to website traffic and conversion rates for a specific online brokerage, and it calculated profits with and without the patented technology. Vega also supplied a Georgia-Pacific factor analysis to estimate reasonable royalties in this case.

  • Real Estate Valuation: Vega supported an expert who was retained to determine property values in an action alleging the defendant breached representations and warranties by misrepresenting the quality of the loans in certain agreements. The Vega expert addressed this claim by econometrically evaluating the impact of the alleged misrepresentations on property values. To do so, the expert constructed a series of regression models that leveraged historical property valuation data available through the Zillow API to estimate whether the alleged misrepresentations had an economically significant impact on the change in property values between origination and liquidation.

  • Valuations of Fixed Income and Derivative Products: The Vega team supported an expert who was retained to analyze the effect of macroeconomic variables, changes in liquidity, and trust-specific factors such as bond insurance, interest rates, and spread in RMBS valuations. The Vega team has also supported expert's who valued derivative instruments associated with RMBS under various economic projections.

  • Loan-Level Risk Profile Analysis In RMBS Repurchase Actions: A Vega expert was retained on more than half dozen cases in which trustees alleged that defendant originator failed to cure or repurchase loans that allegedly failed to conform to the representations and warranties. Vega supported the expert's empirical analysis to determine whether or not the alleged loan-level defects, if true, would have resulted in a statistically significant impact on the value of the loan. In one of these cases, Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC (N.Y. Sup. No. 652761/2012), this analysis withstood a motion to exclude. 

Experts

Rajeev Bhattacharya

Professor of Finance at R.H. Smith School of Business at the University of Maryland

  • Antitrust & Competition
  • Data Science & Statistics
  • Valuation
  • Securities & Finance
Colin Carter

Distinguished Professor, Department of Agricultural and Resource Economics, University of California, Davis

  • Agriculture
  • Valuation
Ethan Cohen-Cole

Senior Advisor at Vega Economics

  • Data Science & Statistics
  • Securities & Finance
  • Healthcare & Health Economics
  • Valuation
  • Consumer Finance
  • Financial Institutions
Joel Finard

Principal at CapMarket Consulting

  • Valuation
  • Financial Institutions
  • Securities & Finance
Sudip Gupta

Clinical Associate Professor of Finance and Business Economics at Fordham University

  • Valuation
  • Antitrust & Competition
  • FinTech
  • Corporate Finance
  • Securities & Finance
Paul Habibi

Continuing Lecturer of Finance and Real Estate at UCLA Anderson Graduate School of Management and Lecturer in Law at UCLA School of Law

  • Valuation
  • Private Equity
  • Accounting
  • Real Estate
  • Corporate Finance
  • Financial Institutions
Stephen F. Hamilton

Professor in the Department of Economics at Cal Poly San Luis Obispo

  • Agriculture
  • Antitrust & Competition
  • Valuation
  • Energy & Environmental Economics
Hans R. Isakson

Professor Emeritus of Economics at the University of Northern Iowa

  • Valuation
  • Energy & Environmental Economics
  • Real Estate
  • Securities & Finance
Gordon Klein

Lecturer in Accounting at UCLA Anderson School of Management

  • Securities & Finance
  • Corporate Governance
  • Accounting
  • Valuation
Joe Leiwant

Founder and Managing Director of Dean Consulting, LLC

  • Valuation
  • Bankruptcy & Financial Distress Litigation
Francis A. Longstaff

Allstate Chair in Insurance and Finance at UCLA Anderson School of Management

  • Securities & Finance
  • Insurance & Risk
  • Financial Institutions
  • Valuation
  • Accounting
Edward Morrison

Charles Evans Gerber Professor of Law at Columbia Law School

  • Valuation
  • Bankruptcy & Financial Distress Litigation
  • Consumer Finance
Micah Officer

Professor of Finance at Loyola Marymount University

  • Corporate Governance
  • Bankruptcy & Financial Distress Litigation
  • Valuation
  • Private Equity
  • Corporate Finance
Jon M. Riddle

Principal and Senior Economist at ECONOMIC ASSOCIATES

  • Antitrust & Competition
  • Healthcare & Health Economics
  • Valuation
Michael A. Sadler

Senior lecturer in the Department of Finance and the Department of Economics at the McCombs School of Business at University of Texas at Austin

  • Data Science & Statistics
  • Valuation
  • Energy & Environmental Economics
Atulya Sarin

Professor of Finance in the Leavey School of Business at Santa Clara University

  • Corporate Finance
  • Valuation
  • Financial Institutions
  • Securities & Finance
Wei Tan

Managing Director at Mingde Economic Research Inc. and an Adjunct Professor at Johns Hopkins University

  • Antitrust & Competition
  • Data Science & Statistics
  • Valuation