on 2023/07/21 by alex1, []

In contrast to means of payment, a piece of money that is traded – at its respective price for the weight of precious metal or – at its collector’s value. – See coin, numismatics. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor […]

on 2023/07/21 by alex1, []

A possible loss from converting one’s money into one asset or into several assets. Such a risk of loss (risk of losing) always exists, with every kind of investment; it is to be attributed to the circumstance that one transfers in principle by the activity of the investment existing means of payment from the own […]

on 2023/07/21 by alex1, []

Investors noticeably withdraw money from a weak currency and park it in a strong currency. – Before entry into the European Monetary Union, periods of USD weakness were regularly associated with shifts in favor of the DEM. The resulting appreciation of the DEM caused considerable tensions within the European Monetary System, sometimes resulting in a […]

on 2023/07/21 by alex1, []

A bond that allows the investor to choose in which currency he wishes the interest payments and/or the final repayment to be made (bond for which interest payments and/or the final repayment are agreed in a different currency). The terms and conditions of the bond must specify how the conversion rate is determined. – Often […]

on 2023/07/21 by alex1, []

From the issuance of bonds in a currency area and their features, the central bank gains important information for forward-looking monetary policy. The relevant data are therefore monitored by the ECB under the two-pillar principle. – See analysis, monetary, data, soft, key, macroeconomic, money supply, leading indicator, economic indicators, important. – Cf. the annex „Euro […]

on 2023/07/21 by alex1, []

Unless otherwise defined, this is the gross yield on ten-year high-yield government bonds. Central banks monitor bond yields because yield spreads at least help to explain international movements of capital. – See credit default swap spreads, corporate bonds. – Cf. Deutsche Bundesbank Monthly Report of August 2005, p. 37 (overviews EUR/USD since 2003), ECB Monthly […]

on 2023/07/21 by alex1, []

The acceptance of a bill of exchange debt by the drawee. By signing, he legally becomes the acceptor (acceptor, in older documents also corresponsal) with the obligation to pay the amount of the bill when due; in older documents also called acceptance. – A bill of exchange accepted by the bank. The customer usually discounts […]

on 2023/07/21 by alex1, []

Generally a ratio for the return. – If the average return of a security or portfolio is greater than expected in terms of market risk, the alpha value is positive; if not, it is negative. – In particular, in the case of a capital management company, the higher return (extra return) generated at the end […]

on 2023/07/21 by alex1, []

At an institution, analysts‘ compensation must be segregated from the income and any bonuses of other employees if conflicts of interest are to be feared. – Cf. BaFin Annual Report 2007, p. 148 (new rules of conduct). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express […]

on 2023/07/21 by alex1, []

According to the definition of the German Federal Financial Supervisory Authority (BaFin), a public offer (buying quotation) exists on the financial market if an unspecified group of persons is invited to submit a bid (offer to buy) via any medium (e.g., the Internet). – See prospectus requirement, mutual funds, exchange offer. Attention: The financial encyclopedia […]