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

Backwardation

Banking; Investment banking

(1) Payment made to carry forward short positions. (2) Situation in which the spot price of a currency plus the cost of rent and interest exceeds the forward price. Opposite: contango.

Firm underwriting

Banking; Investment banking

Also: direct underwriting. Undertaking by a bank or syndicate to assume the risk of buying a new issue of securities and to offer them for public subscription at its own risk.

Hard currency

Banking; Investment banking

Freely convertible currency characterised by low inflation rates in the country of issue and particularly high currency stability. Opposite: soft currency.

Adjustment on conversion

Banking; Investment banking

Cash amount payable to the bondholder on conversion of a bond or payable to the company by the bondholder if the adjustment is negative. It is made up as follows: (1) Accrued interest if the term of ...

Non-conforming mortgage

Banking; Investment banking

Mortgage loan that does not conform to US agency-established limits such as loan-to-value ratio, term to maturity and other characteristics. Non-conforming mortgages are usually mortgages not meeting ...

Small cap

Banking; Investment banking

Share issued by companies with a relatively low stock market capitalization, a low public profile and thin trading volumes. See also: large cap, mid cap.