on 2023/07/21 by alex1, []

A security that is protected against changes in the value of money in terms of the payments contractually flowing from it (regular interest) and in terms of repayment (redemption) (bonds whose principal and coupon are indexed to inflation, cutting out inflation risk). – See bond, index-linked, federal securities, monetary value, inflation protection, capital investment, capital […]

on 2023/07/21 by alex1, []

A bond in which the interest rate increases with increasing time from issuance (a bond that pays an interest rate for an initial period which then increases to a higher rate), where the times and interest rate steps are specified in advance in the bond conditions and are thus known. – In the reverse case, […]

on 2023/07/21 by alex1, []

An agreement formally entered into prior to placement between the issuer of a bond and a group of purchasers (usually institutes) wherein special terms are set forth for the contracting parties (the formal agreement between a group of bondholders, regularly institutes, and the bond issuer containing special terms of the debt). – See issuance, subscription […]

on 2023/07/21 by alex1, []

A charge levied in earlier times on persons who wished to settle permanently within a (city) municipality or territory. – Fee for the admission of a new journeyman to a guild, also called Brudergeld, Heischgeld and Heischungsgeld (Heischung = here: admission to a guild). The amount of the fee was usually determined on a case-by-case […]

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 […]

on 2023/07/21 by alex1, []

In the case of currency options, the underlying is in the usually a specific currency amount. In this case, the at-the-money strike price often does not refer to the price of the underlying on the spot market prevailing at the time of the transaction. Rather, the strike price is based on the current forward price […]

on 2023/07/21 by alex1, []

Contractual agreement commonly used in credit insurance, according to which the policyholder must disclose his debtor (i.e., the customer to whom he is taking out insurance against a credit event) to the insurer for the purpose of any credit assessment above a specified amount (e.g., 50,000 euros). – See probability of default, liability, credit risk, […]

on 2023/07/21 by alex1, []

A committee composed of the various experts of a capital management company, bank or insurance company that meets regularly to discuss purchases and sales of securities and other assets (such as investments, precious metals, real estate, works of art, options). Usually, the investment committee also has decision-making power. – See advisor, asset-liability committee, actuary, investment […]

on 2023/07/21 by alex1, []

The excessive (usually, more than thirty percent) accumulation of a particular asset in a portfolio. Usually, more than thirty percent of such a concentration (an asset making up a substantial part, usually, more than 30 percent, of the investor’s portfolio). – See investment diversification, asset class, investment risk, order fund, risk management, polygon, magic. Attention: […]

on 2023/07/21 by alex1, []

The obligation of citizens to accept the legal tender introduced by the state in the form of coins and notes. – See cash, validation, dollarization, cryptocurrency, money ownership, money functions, money reflux, capital flight, secondary currency, parallel currency, regional money, commodity money, currency, money by halves, means of payment, central bank money, cigarette currency. Attention: […]