futures contract at the LIFFE, where the underlying instrument is an interest rate swap introduced in 2001 with terms of 2, 5, and 10 years denominated in EUR similar contracts in USD are available at CBOT and CME

Option on an interest rate swap. Types:payer swaption: corresponds to a call option on an interest rate swap,The purchaser of the payer swaption has got the right but not the obligation to purchase a specified interest rate swap at the strike price, i.e. he concludes a swap in which he pays a fixed interest rate in exchange of a variable one (e.g. EURIBOR).Receiver swaption corresponds to a put option on a interest rate swap, The purchaser of the receiver swaption has got the right but not the obligation to sell a specified interest rate swap at the strike price on expiry date, i.e. he concludes a swap in which he receives a fixed interest rate in exchange of a variable one.

see underwriting syndicate

Banks that form an emission syndicate together.

v. SAFE

combination of a fixed rate bond and an interest-rate swap, which changes the fixed coupons into variable interest income

A simulated position by combining underlying, futures and / or options positions. Long Call combined with short put synthesized Long Underlying. + C = P + S

Part of the overall risk in equities, which is induced by fluctuations in the overall market.

v. tom/next

arrangement

see interbank deposit

A debt security that is offered with the same terms over a longer period in the primary market for the initial purchase. Most bond issues are tap issues today.

method of issuing securities, the full amount is issued in several parts, depending upon the cash demand of the borrower

It refers to the portion of the total increase in value, derived from interest, dividends and rental income. (Ordinary income) The taxable income proportion is the highest for classic bond and the lowest equity funds funds.

Due to the investment income tax of 25% in the payment of interest income, income tax is already settled.

v. Treasury Bill

The Bond Market Association,formerly PSAwww.bondmarkets.com

abbr. of Treasury Bondsecurity issued by the US-american ministry of finance (treasury) with a maturity of at least ten years and semiannual coupon payments

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Auction system of central banks to provide liquidity to commercial banks or withdraw liquidity from the market; most important monetary policy instrument of the central banks in the context of open market policy. Variants: main tender; Base Tender; Fine-tuning operations