Cyber*School

The value with which off-balance positions are weighted, to calculate the required capital adequacy.

abbr. (US-) Generally Accepted Accounting Principles

french designation for bearish

frensh designation for bullish

see also asset-backed security

that share of a coupon of a bond which is entitled to seller,The payment of interest (the coupon) is effected to the bearer of bond. If the bearer has not held the bond for the entire interest-rate-period, a share of the payment of interest is entitled to the previous owner. This share is called accrued interest.

abbr. Association Cambiste Internationale

method of interest calculationthe number of days of the interest rate period are calculated as real calendar daysthe number of days of a year is assumed to be 360also known as: money market method and french method

method of interest calculationthe number of days of the interest rate period is calculated as real calendar daysthe number of days of a year is assumed to be 365

method of interest calculationboth the number of days of the interest period and the number of days of a year correspond to the real calendar days

The fund manager seeks to achieve a higher performance by deviations from the established benchmark than the benchmark.

Risk difference between the portfolio and the fixed benchmark.

A 30/360 day-count convention assumes there are 30 days in a month and 360 days in a year. This method is usually used in the money market and among the money market operations of the ESCB. It is also called euro interest rate method, French interest method or money market method.

(ACT / 365) Interest calculation method in which the number of days for the interest period are calculated as true (determined by the calendar) days (ACT). The number of days in a year is assumed to be 365. Also called English interest calculation method.

An actual/actual day-count convention uses the actual number of days in the month and year for a given interest period. This method is commonly used in the bond market in the euro zone and the US. Also called American interest calculation method.

(Added value on equity, AVE) It includes the absolute contribution of the bank, the divisions or subordinate levels to which the cost of capital (cost of capital employed) are exceeded or undercut. The operating surplus profit is the main control parameter of a bank.

Price-sensitive company announcements are published by companies in the context of ad hoc reports (i.e. pursuant to § 48d of the Exchange Act (Stock Exchange Act) and § 82 (7) and (8) Stock Exchange Act). The issuers of financial instruments have to immediately disclose inside information that directly relates to themself to the public. Ad-hoc reports to ensure a consistent information to all market participants.

One of two types of internal ratings-based approaches. With A-IRB, financial institutions are able to provide internal data to determine the risk-parameters probability of default, exposure-at-default and loss-given default. (See also: Internal ratings-based approach, foundation internal ratings-based approach)

(Premium) The commission of securities is the difference between the face value of a security and the price actually payable higher market price or in particular a higher issue price. In most cases, the premium is expressed in%. The premium, which is payable on the purchase of most fund is called the initial charge. Contrary discount.

Association of International Bond Dealers, forerunner of ISMA (International Securities Market Association)