Cyber*School

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)

see also advanced internal ratings-based approach

Restricted acceptance / allotment of securities

abbr. Asset-Liability management

The multiplier for the operational risk regulatory capital charge calculation under the basic indicator approach (see also basic indicator approach, operational risk)

a type of foreign bondindicates a bond which is issued from a foreign entity in Switzerland denominated in CHF

An approach to risk management combining capital markets, reinsurance and investment banking techniques that allows a party to either free itself from risks not easily transferred via traditional insurance, or cover such risks in a non-traditional way by using the capital markets, for example.

Designed to help prevent double counting of operational risk in emerging market countries. The operational risk capital charge is the same as for the standardised operational risk capital charge, except for two business lines: retail banking and commercial banking. For these business lines, loans and advances multiplied by a fixed factor m replaces gross income as the exposure indicator (see also beta, operational risk, standardised approach operational risk)

see also advanced measurement approach

A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

see interest calculation method actual/actual

see american style option

(American style option) An option that can be exercised at any time between purchase and expiration date.

Method of allocation at interest tenders, where the lowest accepted bids are allocated at the particular bid rates opposite: dutch-style tender

bond which is repaid by instalments,Thus the bond has got an amortizing nominal structure.