on 2023/07/21 by alex1, []

A bond without a final maturity date, usually issued by the government. – Theoretically, their term is infinite. However, they almost always contain a call option on the part of the issuer, often in the form of an exchange offer. – See gilt, consols. Attention: The financial encyclopedia is protected by copyright and may only […]

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, []

A committee of representatives of the relevant departments at the level of an individual bank or at the top level of the bank (Group management) that deals with the management of interest rate risk, develops relevant proposals and forwards them to the Board of Managing Directors. – See asset interest rates, actuary, investment committee, liquidity […]

on 2023/07/21 by alex1, []

The fact that in China and Europe, the gross return on investments will decline in the long term. This is because the shrinking workforce means that more capital is used, and the return on this capital thus falls. As a result, there is likely to be an automatic transfer of capital from the aging Western […]

on 2023/07/21 by alex1, []

Share certificates issued by U.S. banks and representing shares in foreign companies (negotiable instruments issued by a U.S. bank and representing the shares that it has acquired in a foreign company listed on a non-US market). In this way, foreign shares can be traded via ADRs – on U.S. stock exchanges and (which is important […]

on 2023/07/21 by alex1, []

Unless otherwise defined, an interest rate swap that allows reductions in the notional principal amount to be made during the term of the swap (an interest rate swap with a decreasing notional principal amount). – See cap, contingent swap, money market segments, term premium, LIBOR spread, reversal, currency swap. Attention: The financial encyclopedia is protected […]

on 2023/07/21 by alex1, []

The possibility for a supervisory authority to order an audit of a bank’s accounts by civil servant auditors, who are also assigned to the supervisory authority if possible, in cases of suspicion. This is common practice in many countries, but not possible in Germany, as there are no civil servant auditors (yet). Attention: The financial […]