Cyber*School

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

abbr. refinancing

Banks borrow to be able to lend. They can either borrow at the money market or the capital market. Cost of refinancing is determined by the uncertainty of the future interest rate development.

Name shares are registered in the name of a natural or legal person, which is the name of the shareholder. The name is recorded in the share register of the Company. Opposite: bearer shares

Remaining maturity of debt securities from a transaction date or another date until maturity.

The replacement risk is the risk of the bank that additional costs in replacing the same position in the market occur when a partner defaults.

abbr. for repurchase agreement,sale of securities with an simultaneous agreement, to repurchase them on a future date,A repo corresponds de facto to a security callateralized credit-taking.Basically there are two types US-style repo (classic repo) and sell and buy back.The PSA/ISMA Repurchase master agreement serves usually as the legal basis. opposite of repo: reverse repo

White flowers Fund (so-called reporting funds) is treated for tax purposes as a domestic fund. Distribution income be verified by a tax representative in Germany (bank or public accountants) annually and the distribution and income equivalent returns are reported on an annual basis. The proportion of interest income is reported daily.

Short for Special Government Representative for the capital market.

A form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. For the party selling the security (and agreeing to repurchase it in the future) it is a repo; for the party on the other end of the transaction, (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement. Fundamental distinction is made between US-style repo (classic repo) and sell and buy back. The legal basis is the ISMA Purchase Master Agreement (ISMA Framework Agreement)

A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. Share repurchase is usually an indication that the company's management thinks the shares are undervalued. The company can buy shares directly from the market or offer its shareholder the option to tender their shares directly to the company at a fixed price.

see Securitization