Cyber*School

the margin of the seller (=cash borrower) in the repo, The haircut corresponds to the initial margin at futures. It represents an over collateralisation for the purchaser in the repo (= cash lender). Additional to the haircut margin calls (variaton margins) are common as well.

A financial market of a group of securities in which prices are rising or are expected to rise. The term "hausse" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities. Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. Contrary Baisse

A technical analysis term used to describe a chart formation in which a stock's price: 1. Rises to a peak and subsequently declines. 2. Then, the price rises above the former peak and again declines. 3. And finally, rises again, but not to the second peak, and declines once more. The first and third peaks are shoulders, and the second peak forms the head.

the practice of deferring accounting recognition of gains and losses on financial market hedges until the corresponding gain or loss of the underlying exposure is recognised

An aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds are illiquid as they often require investors keep their money in the fund for at least one year.

A ratio comparing the value of a position protected via a hedge with the size of the entire position itself. The hedge ratio is important for investors in futures contracts, as it will help to identify and minimize basis risk.

safeguarding of positions against risks, The basic idea of this is getting a compensatory effect through taking an opposite position.

abbr. for Hold In Custody Repo a repo at which the seller of the security does not deliver to the purchaser, but holds it in custody of the buyer, The repo rate is normally higher than at the classic repo, because the buyer has got less flexibility and a higher risk. The seller must not use the security in another repo again (so called double dipping.

Designation for the maximum price of a security. Contrary Low

(High Liquid Assets - HLA) Represent the numerator of the LCR and are composed of cash, minimum reserve with the central bank and securities with the highest credit ratings (excluding securities of financial institutions.)

the financing of commercial real estate that exhibits higher loss rate volatility compared with other types of specialised lending

Risky loans with high interest rates, usually lower credit quality of debtors.

Information concerning the history of a company, historical data, such as the historical course, the historical price-earnings ratio, revenue and revenue growth, earnings and earnings growth are used for the creation of forecasts for the company's future.

statistical method to compute value at risk (var) The historical simulation evaluates the changes of the value of a portfolio using historical market data. The highest change in the portfolios value which is within the confidence interval represents the risk measure. other methods: monte carlo simulation and variance/covariance method

measure of the observed past fluctuation of an instrument contrary to the implied volatility the h.v. is applied in risk measurement

v. HIC repo

The holder has the right but not the obligation to buy or sell the underlying at the strike price until the expiration date.

Period in which a share remains in the hands of the same owner.

another designation for home country supervisor

see Time Spread