Cyber*School

On the stock market a name for strongly rising prices. Often referred to as stock market rally or rally.

interest rate swap in which the change of the variable interest rate is limited, in respect of the previous period

another designation for differetial swap

see exchange price

creditworthiness of a spedific security issue or a particular borrower as evaluated by a rating agency

Rating agencies rate the creditworthiness of an issuer and debt instruments using a standardized procedure on short- and long-term periods. The credit rating is expressed in combinations of letters, the highest one is AAA. The best-known rating agencies are Standard & Poor's, Moody's and Fitch.

An assessment of the risk of an obligor on the basis of a specified set of rating criteria. From this assessment, an estimate of the probability of default (PD) is derived.

Funds that do not invest in securities but primarily in real property (land and buildings).

provides information about changes in purchasing power of the capital employedIt is the nominal interest rate after deduction of the rate of inflation

An indication whose value is recalculated after each price event without delay.

If earnings are reinvested all the income earned is invested again. Therefore investors will not receive any distributions during the year.

see recapitalised securities

For reinvesting all the income earned by securities is invested again. The investor thus receives no dividends during the year. However, he is involved in the appreciation of the re-invested income of the security.

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 an specified interest rate swap at the strike price on the expiry date, i.e. he concludes a swap in which he receives a fixed interest rate in exchange of a variable one (e.g. EURIBOR). A receiver swaption can be used in order to hedge against falling interest rates.v. swaption

The recovery rate is that proportion of the unsecured exposure, which is still repaid in a credit default.

Repayment of the outstanding capital. (borrowed)

The redemption price is that price at which a security is amortized at maturity.

(reduce) Analysts estimate for a stock that it will performe worse than the comparable (industry) index in the coming months. Short-term price increases will be used to sell or to reduce position.

risk-free interest rate for the same fixed-interest period for an alternative investment or refinancing on the interbank market.

The price which has been most recently determined in an auction or during continuous trading for a particular security