What is Mark-to-Market?

Question

Accepted Answer

Mark-to-Market (MtM) is an accounting methodology that values financial assets and liabilities based on their current fair market price, providing a real-time assessment of an entity's financial position by reflecting potential gains or losses that would be realized if the assets were sold today.

Mark-to-Market

What is Mark-to-Market?

What is Mark-to-Market (MtM) accounting and how is it applied to traditional financial instruments like Treasury securities?

How does Mark-to-Market function in the context of Repurchase Agreements (Repos) and margin calls?

Why is Mark-to-Market a critical mechanism for the stability and transparency of Real-World Asset (RWA) tokenization, particularly for tokenized Treasuries?

What are the primary challenges and controversies associated with Mark-to-Market, and how is its application evolving with RWA tokenization?

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