Cyber*School

The issue surcharge has to cover the distribution costs and is expressed as a percentage of the redemption price. If you increase the redemption price by the issue surcharge, you get the issue price. The issue surcharge has to be clearly defined by the directions of the fund. It can reduce the yield of an short-term investment drastically.

The issuer of a security is the one that provides a paper on the market for sale. Normally, this function is performed by commercial banks. Their function is particularly important in the new issue of shares or warrants, since the issuer decides the price at which, for example, the stock is tradeable.

Financial institution which has taken over the placement of newly issued securities.

see issuing price

abbr. in the money

Ratio that indicates how much the performance of a Fund is above the benchmark, taking into account the level of risk. The higher the value, the more positive and the better the fund has performed compared to its benchmark.

High-risk loans with high interest rates, usually by borrowers with lower credit ratings.

cp. vega

The key figures are used for assessing investment funds and go beyond the pure analysis of the performance . These include, for example, the terms volatility, Sharpe ratio, Jensen's alpha.

The Key Rate Duration describes the overall interest rate risk of interest rate derivative on individual maturity spectrum. Using the Key Rate Duration manages to calculate the consequences of a turn or curvature of the yield curve for the present value of the portfolio.

Last day before the expiration date on which a particular option may be traded. Very often the third Friday of each calendar month.

Lending operations are all credit operations of the Bank. The Bank lends money to the customer and receives interest by the customer for that service. These transactions are recorded on the asset side of banks' balance sheets.

A shareholder letter is a letter written by a firm's top executives to its shareholders to provide a broad overview of the firm's operations throughout the year. The letter generally covers the firm's basic financial results, its current position in the market, and some of its future plans. The shareholder letter is generally written once per year and is included in the beginning of the firm's annual report.

The leverage effect is the increased profitability of equity capital caused by soft loans bonded to profitable investments. If a company borrows more, any profits or losses are shared among a smaller base and are proportionately larger as a result. Options dealings: The leverage effect indicates how the price of the option changes in relation to the base value.

An indicator that measures the level of debt of a financial institution. The core capital (Tier 1 capital) will be compared with the (unweighted) balance sheet positions and the off-balance sheet asset positions.

abbr. Loss Given Default

Equity and all liabilities (obligations) of a company that are included in the balance sheet of the Company and which are compared with the assets.

On the theory of efficient capital markets based approach that attempts to map a given benchmark in terms of their risk-return profile as closely as possible.

Interest Rate Swap or currency swap which is related to a liability,by means of a liability swap the type of the interest expense is changed from fixed into variable or vice versa

abbr. of London Interbank Bid Rate, LIBID is usually 1/8% below LIBOR