Cyber*School

A standing facility of the Eurosystem which counterparties may use to receive overnight credit from a national central bank at a pre-specified interest rate against eligible assets. Comparable to earlier Lombard loan. Often the upper limit of the call rate. Therefore it is the key interest rate.

Highest yield which is accepted by the Federation that leads to an allocation to individual banks at the yield tender process.

Is the additional risk that arises when assigning a further loan to a given portfolio. Since the commitments of a loan portfolio among themselves not perfectly correlated, the sum of the individual risks are much higher than the portfolio risk itself.

Market price of a listed company. Calculated from the price of the stock multiplied by the number of shares of a company.

Takes place in a financial market where - due to an offer (and vice verca) - buying and selling prices are provided in short time intervals

This method is based on the opportunity cost principle, which means that every balance sheet item is assessed at a market interest rate, as if a corresponding transaction at the same interest rate were carried out on the money or capital markets.

(Market makers) Market participants (mostly banks), which provide during the entire trading hours bid and offer prices. This ensures sufficient liquidity in the market.

(Market order) order without giving a price limit. The entire order is executed as soon as possible at the best price. The top order can also be provided with the execution restrictions Fill-or-Kill or immediate-or-cancel.

Everyone who buys and/or sells financial instruments on their own or third party account by means of the exchange companies operated markets.

another designation for market risk

another designation for market risk

risk of deterioration of a banks profits, due to a unfavourable developement of market prices (e.g. securities, foreign exchange, interest rates etc.)

(keep, hold, or neutral) Opinion of an analyst that a share will develop parallel to an (sectoral) index.

evaluation of a financial instrument or an entire portfolio on the basis of the current market prices

a type of foreign bondindicates a bond which is issued from a foreign entity in Spain denominated in EUR

This is the matching of supply and demand, corresponding to the pricing rules.

another designation for maturity period

Funds with limited runtime from the outset. Investors can only buy these funds during a tight subscription period. Afterwards the issue of the shares is set. Invested capital remains in the fund until the end of the term. However, investors can sell their fund shares during the term on each trading day. At the expiration date of the entire fund is dissolved and invested capital including accrued income is distributed to the shareholders.

Liquidity / maturity matching

are defined as arrangements concerning capital payment flows (e.g. the capital redemption profiles of a loan, such as final maturity or annuity)