A disocunt rate is a rate where the interest payments are calculated - in contrast to normal interest rates - on the basis of the repayment value. The term discount rate is also often used in conjunction with the rate at which commercial banks may sell bills of exchange to the central bank

Equity, which is not bound by fixed assets, or the risks in the banking book and trading book.

The payment of dividends, bonuses, liquidation proceeds, etc. to the shareholders. For distributing securities, the income is collected until the date of payment and then (usually once a year) distributed. On the day of distribution the value of the underlying security decreases by the distribution amount.

Investment income (long and short-term nature), interest or dividends paid to bond and equity holders. The distribution may be paid in cash (cash dividend) or in shares (stock dividend).

a simple risk management technique that mixes a wide variety of investments within a portfolio, thus minimising the impact of any one security on overall portfolio performance

Periodic distribution of a company to its shareholders. The indication of the amount is generally done as a dividend per share. Dividends are income components, which are not reinvested by the company.

see Ex-dividend

A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows: Annual dividends per share/Price per share. This ratio can be calculated either on the basis of the currently paid dividend or on the basis of expected future dividends.

abbr. Dow Jones Index

a repo at which the purchaser is allowed to return another paper at maturity (but with agreed qualitiy)

a bond which is issued by a domestic issuer in his home country under domestic law in domestic currency

A bond that is issued by a domestic issuer in the home country under domestic law in domestic currency.

Repeated use of a security as collateral in a repo. This practice is not allowed and is only possible if the seller fails to deliver the securities to the buyer.

The Dow Jones Industrial Average (Index) contains the 30 largest industrial companies of the New York Stock Exchange and was first published in 1897. It was designed as a price index and is computed continuously (real-time).

the process of an issuer's debt securities' ratings being lowered by a rating agency (see also rating, upgrade)

(Probability of failure during economic downturn) is the highest observable PD over a predetermined period of time (either on the class level or portfolio level).

cp. bill of exchange

This bond has the particularity that the issuer is a foreigner, but the bond is acquired with the domestic currency (eg EUR), the interest is paid in EUR, but repayment has to be made in the currency of the issuer.

also called: simple duration, Macauley durationpoint in time, when the loss of a bond, due to an increase of interest rates, is offset by the higher return of the re-investment of coupon payments and vice versathe simple duration is distinct from the modified duration

method of allocation at interest tenders, where all bids are allocated at the same interest rate This interest rate is called marginal interest rate (=lowest accepted bid) opposite: american-style tender