Cyber*School

abbr. Spot/Next

abbr. for Synthetic Agreements for Forward Exchange, Types:1) ERA (Exchange Rate Agreement) Agreement between two parties to level off the difference between an agreed, future swap rate and the actual swap rate prevailing two days before the start of the swap term2) FXA (Forward Exchange Agreement): In FXAs the difference between an agreed outright-price and the spot price at the beginning of the swap period are leveled off additionally.Purpose of SAFEs is the fixing of future swap rates resp. outright prices, without settlement risk (at FX-swap deals).

The preservation of the assets invested. The safety of an investment depends on the risks to which it is subjected. This includes, for example, the creditworthiness of the borrower, the price risk, currency risk and the political stability of the country of investment.

a type of foreign bondindicates a bond which is issued from a foreign entity in Japan denominated in JPY

Regular payment of a certain investment amount for the purchase of investment units. The purchase of fund shares through a savings plan offers the advantage of cost averaging and also the possibility to flexibely design the amount and duration of the payments. Saving plans also reduce the difficulty of finding the ideal time to make an investment.

abbr. special drawing right A measure of a countrys reserve assets in the international monetary system. also called paper gold

The market in which securities are traded after they are initially offered in the primary market. Most trading occurs in the secondary market.

Volume-weighted average return of all fixed-rate bonds of the federation (SMY-Bund) or all issuers (SMY issuers total) with a remaining maturity of more than one year.

A mutual fund that specializes in investing in selected industrial and economic activities, which can be particularly benefits from growth stocks. Examples are technology, software, pharmaceuticals, energy.

Statistical measurement number (index), which displays the performance of certain sectors. (eg mechanical engineering, pharmaceuticals, etc.)

The Securities Identification Number (german WKN) is a unique national identification, which is awarded by the Austrian Control Bank.

(SIFMA) International representation of interests of capital market participants, emerged from the merger of The Securities Industry Association (SIA) and The Bond Market Association (TBMA). www.sifma.org

With a securities lending, for example, of the Austrian Control Bank (OeKB) market participants can borrow securities for a period of time. e.g to cover existing short positions.

Contains provisions relating to the supervision of investment services, defined rules of conduct and determines the authority for supervision on securities trading. Financial Market Authority (FMA).

Securitization of assets in an SPV (Special Purpose Vehicle), which shares may be sold to customers. Thus, the entire cash flow passes (incl. losses) of credit exposures to the buyers of the securitized loans.

A financial instrument that represents: an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option. A security is a fungible, negotiable financial instrument that represents some type of financial value. The company or entity that issues the security is known as the issuer.

exchange of two securtities for a certain period, whereby one is a general collateral and the other is a special collateral. The recipient of the specials pays a premium which is quoted in % p.a..

The price of a security is the price at which it can be bought or sold on the stock exchange. The price of a security that is traded on the stock market, depends on supply and demand.

Consists of the stock market and the bond market.

a type of repo,In contrast to the US-style repo the purchase- and sale-transaction are closed in two seperated contracts. Interim coupon payments are netted with the repo interest payment and considered in the price of the closing-transaction.Through the design in two seperated deals the substitution, margin calls and open repos are not possible in sell and buy backs.