[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] [Y]
A traditional investment technique whereby fund managers actively manage assets by building and repositioning portfolios to take advantage of market opportunities
The planned writing-down of the value of an intangible asset (e.g. goodwill) over a period of time
A research specialist who analyses the performance and prospects of companies, markets or economies
An intermediary who arranges, for a fee, a transaction between two end-users without directly participating in the transaction
Top-down investment strategy, which specifies the proportions of funds to be ascribed to various asset classes and/or geographical areas
A security, supported by almost any kind of asset, which has a predictable payment stream
The function within an investment bank which ensures smooth settlement, payment and reporting of transactions
A summary of a company's assets and liabilities
Arrangement of direct finance for companies, often for acquisitions or financial restructures
An option, to sell or buy, which ceases to exist or only comes into existence if the underlying asset trades at or through a predetermined price; common in FX markets
A share for which no register of ownership is kept
The price or performance of a financial instrument used as reference to compare the performances of similar instruments
The sale or purchase of a large number of shares in a single transaction (the most common unit is 10,000 shares)
Term for the most highly regarded stock or company; derived from the colour of the highest value poker chip
A certificate of debt issued by a company, government or supranational body, which is traded at a price according to its yield and the issuer's credit rating
The bank which takes overall control of structuring, pricing and inviting other underwriters into a debt or equity issue
A firm or institution which introduces the two parties in a transaction to each other and/or arranges the transaction for a commission fee
Buying control of a company (often by its own management)
A security which the seller can redeem before its stated maturity at a given price or date.
Terms that set upper and lower limits on the price of an asset; most commonly applied to floating-rate interest payments
In Economics this defines premises, machinery and equipment (a factor of production, together with land & labour). In finance, it is used as a generic term for a company's debt and equity.
The market from which companies raise capital by selling medium and long-term financial instruments including bonds, notes, swaps and equities
A company's financial framework, including long term debt, preferred stock and net worth
Trades governed by the SEC's Rule 144A, which permits large institutions to trade among themselves in privately-placed securities, which otherwise have a 2-year holding period requirement.
Assets (property or securities) pledged by a borrower to secure payment of a loan or bond issue in the event of default
A debt instrument which gives the holder the option to convert it to shares in the issuer company.
The processes by which companies raise capital, especially to fund growth, acquisitions etc; the division of an investment bank which advises on acquisitions, mergers, bid defences, restructures and disposals
The nominal amount of interest expressed as a percentage of the principal value, payable to the holder of a fixed income security by the borrower; or a certificate attached to a bearer security showing interest due on a specified date. In the US domestic market: a Treasury note or bond
The other individual or institution party to an agreement or contract
Evaluation by a rating agency of an issue's investment quality, or of a company's overall ability to repay its debts
An exchange rate where the US dollar is not the base currency; or an exchange rate where the national currency is not part of the transaction
A transaction giving the purchaser the right (not obligation) to buy or sell one currency against another at a specified price during a specified period
A person or institution acting as a principal in buying and selling securities
In the UK: a bond, often backed by specified assets or revenues of the borrower; in the US: an unsecured debt
The market on which debt instruments are traded; the division of an investment bank which helps clients buy and sell them
A means for companies, governments etc to raise funds by issuing a contractual obligation to make payments of interest and to redeem a stated principal amount on a stated future date
Loss of value over time, usually of fixed assets e.g. machinery
A security which derives its value from the current or future performance of an underlying asset, commodity, index, currency etc, often used to hedge exposure and to balance risks across a portfolio
Export Credit Guarantee Department. A UK state agency which provides trading insurance for exporters.
Discounted Eurodollar issues of commercial paper - notes or drafts usually of < 3 months maturity, the proceeds of which are typically used for current transactions
Countries with developing economies, often experiencing rapid growth and offering lucrative investment opportunities, but also characterised by instability and high risk
Debt instruments with maturities ranging from one to 5 years, listed on the London and Luxembourg stock exchanges and usually registered with the US Securities and Exchange Commission
Securities issued as shares in a company
The markets on which primary equity issues (e.g. IPOs) are traded; the division of an investment bank which helps clients structure, buy and sell primary equity.
A security whose value is dependent on the price of the underlying stocks, including warrants and options
Securitised debt publicly issued in bearer form outside the home market of the currency of denomination
A generic term for the international (ex-US and Asia) capital markets
Options and futures (derivatives) that are traded on an organised exchange in standard denominations
A debt instrument which gives the holder the option to convert it to shares in a company which is not the issuing company
A security or instrument on which interest is calculated as a constant specified percentage of the principal amount and paid at the end of a specified period until maturity; also used to describe bonds and interest rate products
The selling of new shares in a company on a stock market (a primary market activity)
The trading of currencies, to allow companies to trade goods across borders and to maximise returns on interest rate investments internationally
A contract to buy/sell an asset, at a price agreed today, at a future point in time; the price for that asset. Distinct from futures in that they are not traded on an exchange
Forward rate agreement; a derivative contract in which the buyer locks in a specified rate of interest on a notional future borrowing and the seller agrees to compensate the buyer if market rates turn out higher; a short-dated interest rate swap
The market in UK Treasury ('gilt edged') securities
Advice on and arrangement of finance to fund companies' trade and export activities
An intangible asset representing the difference between the purchase price of a company and its book value
To balance risk by offsetting exposure incurred in one instrument or position (e.g. a bond) with an equal but opposite position in an equivalent instrument (e.g. bond futures)
A bond, sometimes known as a junk bond, usually issued by a company with a credit rating below investment grade, and offering investors the potential of high return with above average risk
An institution whose purpose is to invest its assets or those held in trust for others (e.g. pension funds, insurance companies)
The proportion of a sum of money that is paid over a specified period of time in payment for its loan
A debt instrument
An agreement between two parties to exchange their interest rate exposures from floating to fixed-rate or vice versa
A firm, acting as underwriter or agent, that serves as an intermediary between an issuer of securities and investing institutions, and which advises corporate, institutional and sovereign clients on their acquisitions, disposals, capital raising, structuring and risk management
The lead underwriter of a new debt or equity issue, responsible for selling it to investors but not pricing and inviting other underwriters into the deal (the bookrunner's responsibility)
Obtaining control of a company through debt financing
Finance which takes advantage of the ratio between a company's debt and equity, often associated with relatively high risk and return. The department of an investment bank which provides advice on these opportunities.
The rate at which prime banks offer to make Eurocurrency deposits with other prime banks for a given maturity which can range from overnight to 5 years, in London
The volume of turnover in a market, or the extent to which money can be moved between investments or cashed in
Pertaining to whole economies and inter-relationships between them
The purchase of a company by its existing management, usually with the assistance of financial backers - often providing loans secured on the assets of the company.
A company's share price multiplied by the number of shares issued in the market
The integration of two or more companies, possibly following an acquisition, and involving an exchange of shares
See merger; the division of an investment bank which advises on and helps clients execute mergers and acquisitions
A financial instrument which pays lenders to a company an above-average yield, but also allows them to convert their loans into the company's equity by means of warrants; often used in leveraged buyouts
Assumes that markets are efficient (the price of instruments incorporates all publicly-known information about them); proposes that a diversified portfolio of risky assets will be less risky than the sum of the individual assets
The wholesale securities market, especially in short-term, highly-liquid, high-quality assets
Moody's Investors Service: a US credit rating agency, which applies globally-recognised ratings to bonds and the institutions and companies which issue them.
A bond whose value is based on an interest in a pool of mortgages
A promise to pay rather than an order to pay; in the US, a fixed-rate debt instrument with a maturity of less than 10 years; any floating-rate debt instrument, other than a floating-rate certificate of deposit
Obligation assimilable du Tresor, a French Treasury bond issue with initial maturities of from seven to 30 years
Organisation for Economic Co-operation and Development Exists to promote stable economic growth in its 25 (largely developed) member states: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the UK and the US
An instrument giving the holder the right (not obligation) to buy or sell an underlying asset within a given period at a specified price
A regular share in a company, giving the holder the right to vote on company decisions and receive a dividend
Principal exchange-rate-linked securities Securities whose interest and redemption are paid in the base currency (often US dollar), or the currency in which the relevant operating results are reported, but are based on the exchange rate between the base currency and another currency
The totality of securities owned by an investor or dealer are said to constitute their portfolio; the total portfolio may be managed to balance overall risk and return
A trade involving anumber of different securities, often motivated by an investor's desire to rebalance a portfolio; also known as a basket trade
A class of equity that ranks ahead of common shares in respect of dividends and the distribution of assets should the company be dissolved or wound up; in the US, preferred stock
The market in which new security issues are initially sold or distributed
The provision of banking and investment services to high net worth individual clients
An issue offered to a single or a few investors (usually no more than 20) as opposed to being publicly offered
The sale of government-owned shares in nationalised industries or other commercial enterprises on a public stock exchange
Advice on and provision of financing for infrastructural and public works projects, often in emerging markets
A security which the buyer can sell back to the seller at a given price and/or time.
One in which the return is converted to another currency e.g. an option on US interest rates payable in Japanese yen
Paying off an existing loan with another loan or equity issue, usually to benefit from improved terms.
A share, the ownership of which is recorded by a registrar in the name of the holder or his nominee
A method of maximising returns on a portfolio by borrowing against a security held by the borrower for an agreed interest rate and time period
The division of an investment bank which prepares reports and other information about equities, interest rates or foreign exchange rates for clients
Rearranging the finance of a company, often by changing the balance of debt and equity on the balance sheet
A measure of profitability: the income from continuing operations (after payment of preferred dividends) divided by average common equity for the specified period
This figure has been included in the standard presentation in order to give an indication of where the Ashburton Core Services feature in the universe of offshore funds where volatility or risk is concerned. What it represents is the percentile rankings of Replica Cash & Fixed Income Sterling, Replica Asset Management Sterling and International Equity versus every offshore fund able to demonstrate a 5-year track record (including everything from cash funds to hedge funds). Hence, in the five years to June 2001 around 97% of all offshore funds had been more volatile than Replica Cash & Fixed Income Sterling.
The active management of the level of financial risk incurred by an investor; often involving the use of hedging and derivatives to balance exposure to different risks and returns across a portfolio
An issue that involves shareholders electing to receive additional shares, instead of cash, in respect of all or part of their entitlement to what otherwise would be the cash dividend
A market for securities following their initial distribution; may be order driven (automatic matching of offers with bids) or comprise market makers (the dealers who quote simultaneous bid and offer prices for securities)
Transfer of securities to a borrower (usually so the borrower can pay back a short term liability), in return for a fee. The borrower agrees to replace them in due course with identical securities and the lender retains risks/returns of the securities in the meantime. See repo.
The conversion of bank loans, receivables or other non-tradable financial transactions into tradable securities (usually bonds)
A generic term for all tradable financial assets
Senior debt ranks ahead of all other unsecured or subordinated debt in right of payment in the event of a default
A person or institution which holds shares in a company, participates in voting and qualifies for a dividend.
The market or price for immediate as opposed to future delivery of assets; used in foreign exchange and money markets to signify delivery in two business days' time for deals agreed today
Standard & Poor's Corporation (S&P). A US credit rating agency, which applies globally-recognised ratings to bonds and the institutions and companies which issue them.
An agent who buys and sells securities on a stock exchange on behalf of clients
A physical location where trading in listed securities is regularly carried out by qualified members
A financial instrument designed to meet specific investor needs by incorporating special, non-standard features
Debt which ranks lower than senior and other classes of unsecured debt for repayment in the event of the issuer defaulting.
An exchange between two counterparties of instruments, carried out to balance risk or to match the earnings or maturity characteristics of each instrument to the respective parties' needs
The option to enter into a swap
The distribution among institutions of bank loans and securities, in order to share risk and future returns
A non-interest-bearing discount security issued by governments (especially the US) to finance national debt. The return to the investor at maturity is the difference between the price paid and the face value at maturity
Market analysis based on patterns of price data
A measure of a bank's financial strength used by the Bank for International Settlements (BIS): shareholders' equity plus irredeemable and non-cumulative preference shares and excluding hybrid forms of capital like goodwill; the BIS sets a minimum Tier One capital requirement of 4% of risk weighted assets
Also a BIS definition of a bank's financial strength: accumulated after-tax surplus of retained profits (which banks in some countries may be permitted to maintain as an undisclosed reserve), revaluation reserves of fixed assets and long-term holdings of equity securities, general loan-loss reserves, hybrid (debt/equity) capital instruments and subordinated debt
In investment banking, a member of a new issue syndicate who contracts to purchase primary debt or equity securities on a given date at a specific price, thus guaranteeing the borrower the full proceeds
A term for an investment instrument with no exceptional features.
A statistical measure of risk, volatility is a measure of the distribution of period investment results (typically either weekly or monthly changes). A fund that is very inconsistent (i.e. has a wide distribution of investment results - up sharply one week or month and down sharply the next) will have a high level of volatility.
A certificate attached to a debt security, giving the holder the right to purchase the borrower's common stock at a set price for a specified time period until or beyond the debt security's maturity.
Banks and markets which cater for large-volume transactions for corporates, institutions etc; distinct from retail banking for personal clients
Return on a loan or investment, stated as a percentage of the price
The relationship between short-term and long-term rates expressed as a graph; if long-term rates are above short-term, the curve is upward or positive; if vice versa, the curve is negative or inverted.
© COPYRIGHT 2003 ALL RIGHTS RESERVED GLOBALNORDIC.COM The information on this website are for persons resident outside of the USA and UK.
