Investment banking

Investment banking

Of or relating to the business of underwriting, or acting as the client's agent, in the issuance of securities in order to assist an individual, commercial enterprise, corporation or government instution ro raise capital.

Industry: Banking

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Investment banking

Backtesting

Banking; Investment banking

Checking value-at-risk calculations and investment and hedge strategies against historic data. Backtesting enables the robustness of models to be tested under market conditions.

Capped note

Banking; Investment banking

Also: capped FRN. Floating rate note with a maximum interest rate. See also cap.

Equity

Banking; Investment banking

Also: capital base. (1) In a broader sense a synonym for equity capital. (2) Banking: Article 11 of the Implementing Ordinance for the Swiss Banking Law stipulates that equity consists of core ...

Bid/ask spread

Banking; Investment banking

Spread applied by banks, determined by transaction costs plus a profit margin.

Investment risk guarantee

Banking; Investment banking

Abbreviation: IRG. Swiss federal government institution set up to facilitate investment in developing countries. Investors can use the guarantee to cover certain risks which neither they nor their ...

Originator

Banking; Investment banking

Savings, lending or mortgage bank that initially drew up a mortgage loan or proposed a new securities issue.

Risk

Banking; Investment banking

Exposure to damage or financial loss, e.g. a fall in the price of a security, or insolvency on the part of a creditor. Financial market theory measures the risk exposure of an investment in terms of ...