Cyber*School

see also exposure at default

Early repayment clauses include the possibility of repayment of the securities issued to investors before the originally stated maturity, when a certain event occurs.

The income of a security includes interest and dividend payments (dividends) and other distributions and capital gains resulting from price increases (course).

Earnings before interest and taxes (EBIT = earnings before interest and taxes). Bank earnings before assessment of risk business in the field of securities and loans (= before individual value adjustment).

The annual profit of a company divided by the number of outstanding common shares.

Net earnings per share over the previous 12 months as a percentage of the share price. Inverse of the price-earnings ratio.

Income risk is the possibility of losing the income from the invested capital.

abbr. Earnings Before Interest and Taxes. This is the operating profit.

see also external credit assessment institution

abbr. for European Central Bank

The amount of capital allocated and held internally by an organisation as a result of its own risk assessment methodology

a cycle of economic activity around a trend growth rate typically characterised by a trough, upswing, peak and downswing

Costs which incurre through the holding of equity beyond regulativ capital which is economically necessary to cover unexpected losses. The economic capital may therefore differ from the legally required equity.

v. Euro commercial paper

abbr. Ex dividend

abbr. Expected Default Frequeny

abbr. Exchange Delivery Settlement Price, the price at which futures contracts are settled upon delivery. The EDSP is determined by the exchange, and is often an average of traded prices over a set period or linked to certain fixing (e.g. LIBOR)

The annual interest rate of an amount of capital with time consideration of all cost and revenue factors that lead to payments.

The Effective Duration is a measure of sensitivity, which indicates how much the total return of a bond changes if the paid market interest rate changes. (= spot rates).

under the Basel II agreement, banks are required to use standard values for M or to measure M using a specified definition