Cyber*School

safeguarding of positions against risks, The basic idea of this is getting a compensatory effect through taking an opposite position.

abbr. for Hold In Custody Repo a repo at which the seller of the security does not deliver to the purchaser, but holds it in custody of the buyer, The repo rate is normally higher than at the classic repo, because the buyer has got less flexibility and a higher risk. The seller must not use the security in another repo again (so called double dipping.

Designation for the maximum price of a security. Contrary Low

(High Liquid Assets - HLA) Represent the numerator of the LCR and are composed of cash, minimum reserve with the central bank and securities with the highest credit ratings (excluding securities of financial institutions.)

the financing of commercial real estate that exhibits higher loss rate volatility compared with other types of specialised lending

Risky loans with high interest rates, usually lower credit quality of debtors.

Information concerning the history of a company, historical data, such as the historical course, the historical price-earnings ratio, revenue and revenue growth, earnings and earnings growth are used for the creation of forecasts for the company's future.

statistical method to compute value at risk (var) The historical simulation evaluates the changes of the value of a portfolio using historical market data. The highest change in the portfolios value which is within the confidence interval represents the risk measure. other methods: monte carlo simulation and variance/covariance method

measure of the observed past fluctuation of an instrument contrary to the implied volatility the h.v. is applied in risk measurement

v. HIC repo

The holder has the right but not the obligation to buy or sell the underlying at the strike price until the expiration date.

Period in which a share remains in the hands of the same owner.

another designation for home country supervisor

see Time Spread

It is formed by the issue of participation certificates or subordinated bonds. In Basel 3 it is accepted as equity if it has a term of five years or more. Hybrid capital is thus actually borrowing, which has equity-like characteristics.

abbr. International Accounting Standards

abbr. Internal Capital Adequacy Assessment Process. It is the regulatory process to comply with the capital requirements.

abbr. International Capital Markets Association

abbr. Internal Capital Adequacy Assessment Process. It is the regulatory process to comply with the capital requirements.

abbr. International Monetary Fund (IMF)