Cyber*School

the absolute return on an investment without considering an inflationary impactopposite: real interest rate

value of a financial instrument (bond, note, mortgage or other security) given on the certificate or instrumentsyn: nominal value

v. NDF

Expressed in no particular face value. They certify a share of the assets of the Company.

Non-negotiable instruments are those order instruments pursuant to commercial law, which contain no order clause.

They arrange security transactions among members (banks) at markets which are operated by the exchange operating company.

Part of the overall risk in stocks, which is not induced by fluctuations in the overall market (title specific risk).

yield curve with lower short term rates than long term ratesalso called: positive yield curve, steep yield curve

see fair price

In case of novation netting the assets and liabilities of two transactions are netted on the day of recognition by a novation agreement.

abbr. New York Stock Exchange

A cross-border European stock exchange, originally created in 2000 from the merger of the Amsterdam, Brussels and Paris stock exchanges. In 2001 and 2002, respectively, Euronext acquired the London International Financial Futures and Options Exchange (LIFFE) and the Portuguese stock exchange, Bolsa de Valores de Lisboa e Porto (BVLP), in order to become one of the world's largest exchanges. 2006 Euronext completed their agreed merger with the NYSE Group, resulting in the formation of NYSE Euronext.

v. overnight

v. bond

abbr. Organization for Economic Cooperation and Developement

v. Ask-rate

abbr. Overnight Indexed Swap interest rate swap where the floating rate is linked to an overnight index, available for short terms (up to 1 year) and used in money markets contrary to regular IRS, the floating rate is not paid at every fixing date, but at maturity date as an effective interest rate, i.e. considering compound interest types of OIS: EUR: EONIA swap USD: Fed Funds swap GBP: SONIA Swap CHF: TOIS

(Unsecured exposure) The unsecured part of loans.

Sum of all received in an underlying futures contracts that have not been closed out or exercised yet.

The buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.