The severe political turmoil provoked by an allegedly mispriced private bond issue in Greece added to the controversial matter of whether prices of structured bonds sold to investors are ”fair” or not. In this paper structured bond market is analysed with particular focus on valuation issues. It is argued that in practice prices are subjective, there is not a unique price that a structured bond should be transacted and model prices are in general irrelevant to the investor unless he has access to the underlying swap market. Consequently, the notion ”overpricing” (conventionally defined as the difference between model and transacted price) is misleading.
