on 2023/07/21 by alex1, []

An investor buys bonds with a loan that he pledges to the bank as collateral (a transaction in which an investor borrows to buy bonds, using the bonds themselves as collateral). As a rule, such operations are limited to issues with top ratings and issued by highly creditworthy issuers. In addition, experience has shown that […]

on 2023/07/21 by alex1, []

Items on the asset side of a bank that are exposed to credit, market and/or operational risks (an institution’s assets or off-balance sheet exposures, weighted according to risk). When calculating these, the respective default risk must be determined using certain procedures. If the risk-weighted assets are set in relation to the core capital, the business […]

on 2023/07/21 by alex1, []

Recommendations made by analysts, especially at banks, for or against the purchase of a financial product. Depending on the size of the institution or the reputation of the analyst, these ratings can have a major influence on the price of the financial product (especially listed shares). In this context, certain English-language formulations of one or […]

on 2023/07/21 by alex1, []

When buying as well as selling (short) an underlying forward, a certain amount of money must be available at the time the contract is concluded. This usually corresponds to a percentage of the total value of the contract concluded, which the bank requires. – In addition, a variation margin is calculated periodically during the term […]

on 2023/07/21 by alex1, []

A phrase coined by ECB President Mario Draghi in an interview in December 2013 that spread very quickly (dictum: a popular saying). It refers to the fears of inflation among German citizens, who are particularly suspicious of the ECB’s monetary policy. However, fears in Germany that the value of money will be impaired by the […]

on 2023/07/21 by alex1, []

A provider combines, bundles various assets and combines them into a single offering for the customer. This can be securities, insurance or other financial products. – The EU Commission in 2012 presented a draft regulation for the supervision of such offers. Under the Insurance Mediation Directive, which is already in force, insurance mediators must expressly […]

on 2023/07/21 by alex1, []

Statutory regulations for insurance companies relating to the composition of security assets. – Cf. BaFin Annual Report 2007, pp. 78 ff. (new regulations as of year-end 2007), BaFin Annual Report 2008, pp. 85 ff. (composition of risk capital investment ratio, overviews), BaFin Annual Report 2010, pp. 86 f. (amendment of AnlV; new mixing and spreading […]

on 2023/07/21 by alex1, []

A description of how investors in the form of households, companies and institutions invest money, in the form of – theoretical models that show how this could be done in the best possible way with regard to selected variables (e.g. return, security) or – empirical studies that reveal how investors actually decided on the basis […]

on 2023/07/21 by alex1, []

The bond issued by a joint-stock company in which, in addition to interest, the investor is promised a share in the company’s profit if it exceeds a rate specified in the terms of the bond. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University […]

on 2023/07/21 by alex1, []

The higher capital ratio required under Basel III is not only mathematically possible by increasing the numerator (an institution’s capital). Rather, a reduction in the numerator (a decrease in assets) is also possible. Such a reduction is desirable as far as risky financial instruments and proprietary trading positions are concerned. However, such a reduction would […]