Cyber*School

sum of cash and sight deposits v. money supply

M1 plus deposits with a maturity up to two years as well as deposits with an agreed period of notice up to three monthsv. money supply

M2 plus repos, money market funds and debentures up to two years maturity, deposits with a maturity up to two years as well as deposits with an agreed period of notice up to three monthsv. money supply

cp. duration

They are benchmark and index orientated funds which are using the top-down principle. Real bonds, ressources, currencys and futures form the basis of the investment techniques. The objective of the funds is to surpass the market/the benchmark index.

The magic triangle of asset investment illustrates the conflict between safety, liquidity and yield. Investors try to achieve an optimum amount of coordination of these three factors.

Regular open market transaction of the ESCB for providing short-term bank liquidity. They are issued as weekly standard tenders with an agreed period of 14 days. They are the most important monetary instrument of the ESCB which controls interest rates and liquidity at the monetary market.

Lower limit of the margin account, which must not be exceeded, otherwise an additional payment will be required.

in german nother designation for mandatory convertible bond

In US-style repos interim coupon payments have to be transmitted to the seller of the security by the buyer. This is called manufactured dividend.

Canadian coin

deposit which has to be made at the conclusion of certain deals, margins are applicable mainly at exchange-traded futures and options and in repo marketstypes: initial margin and variation margin

call for settlement of a variation margincommon at: futures and repos

A standing facility of the Eurosystem which counterparties may use to receive overnight credit from a national central bank at a pre-specified interest rate against eligible assets. Comparable to earlier Lombard loan. Often the upper limit of the call rate. Therefore it is the key interest rate.

Highest yield which is accepted by the Federation that leads to an allocation to individual banks at the yield tender process.

Is the additional risk that arises when assigning a further loan to a given portfolio. Since the commitments of a loan portfolio among themselves not perfectly correlated, the sum of the individual risks are much higher than the portfolio risk itself.

evaluation of a financial instrument or an entire portfolio on the basis of the current market prices

Market price of a listed company. Calculated from the price of the stock multiplied by the number of shares of a company.

Takes place in a financial market where - due to an offer (and vice verca) - buying and selling prices are provided in short time intervals

This method is based on the opportunity cost principle, which means that every balance sheet item is assessed at a market interest rate, as if a corresponding transaction at the same interest rate were carried out on the money or capital markets.