[Verse 1] When assets need a price today Three levels show us just the way Level One's the golden rule Active markets are the tool Quoted prices, plain to see That's our best reality [Chorus] One-Two-Three, that's the key Observable to mystery Level One is crystal clear Two has inputs we can hear Three's where models take the wheel Fair value hierarchy's real Mark to market, mark to model That's the valuation throttle [Verse 2] Level Two steps in the game When active markets aren't the same Similar assets give us clues Interest rates and yield curve news Quoted prices for the peer Make the value crystal clear [Chorus] One-Two-Three, that's the key Observable to mystery Level One is crystal clear Two has inputs we can hear Three's where models take the wheel Fair value hierarchy's real Mark to market, mark to model That's the valuation throttle [Verse 3] Level Three's the judgment call Unobservable inputs all Management makes assumptions here Cash flow forecasts, discount rates appear Private equity, complex debt Internal models place the bet [Bridge] Transparency's the goal we seek From strongest evidence to weak Balance sheets must tell the tale Which level makes the numbers sail Auditors will check the source Hierarchy keeps us on course [Chorus] One-Two-Three, that's the key Observable to mystery Level One is crystal clear Two has inputs we can hear Three's where models take the wheel Fair value hierarchy's real Mark to market, mark to model That's the valuation throttle [Outro] Most reliable to least That's how fair value's released Level One-Two-Three today Shows investors the true way
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