Analysts and other market insiders said the rally in the prices of mortgage-backed securities and other troubled assets could allow banks to "write up" the value of the assets. Because investors' risk appetite has grown, the Markit ABX index, which tracks mortgage-backed securities and other assets, has advanced more than 30% during the past three months. However, a variety of factors will determine the extent of write-ups, making it difficult to predict how the rally will affect banks.

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