on 2023/07/21 by alex1, []

Debt security for which contractually agreed interest is not (or no longer) paid. – See probability of default, debt-equity swap, default, calibration, credit, defaulted, air securities, paper, toxic, reintermediation, debt, defaulted, sovereign debt, denied, discriminatory power, validation, securities, riskless. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes […]

on 2023/07/21 by alex1, []

A security, usually issued by the government, – the income from which is not subject to a tax deducted at source, or – is not taken into account for income tax purposes, or – is not taken into account for property tax purposes. In financial theory models, such securities are often compared with comparable taxed […]

on 2023/07/21 by alex1, []

A bond that, according to the contract, – must be serviced by the issuer until the end of the agreed term (the bond cannot be called, no matter what the interest rate is) and – also cannot be called beforehand by the investor. – See bond, callable, straight bond. Attention: The financial encyclopedia is protected […]

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 […]