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

barrier option

Banking; Investment banking

Also: limit option. Option that in contrast to normal calls and puts is subject to certain restrictions which create better premiums. If the underlying of a barrier option touches, exceeds or falls ...

coupon

Banking; Investment banking

A certificate attached to a bond or share which, when detached and presented to the issuer of the security, entitles the bondholder or shareholder to receive the interest payment or dividend or to ...

underwriter listed in prospectus

Banking; Investment banking

Term denoting participation in an underwriting syndicate by being named in the issue prospectus. The underwriter is listed like a syndicate member but is strictly speaking only a sub-participant ...

earnings yield

Banking; Investment banking

Figure obtained by dividing adjusted earnings per share by the share price for the financial year in question. It is the reciprocal of the price/earnings ratio, and is multiplied by 100 to give a ...

contract bond

Banking; Investment banking

A guarantee credit where the bank assumes liability towards a third party for the performance or payment obligations of its client. Contract bonds normally relate to the proper execution of work and ...

modern portfolio theory

Banking; Investment banking

Theory exploring how to achieve optimum risk/return characteristics for customer portfolios through international diversification of investments. Modern portfolio theory was developed by the US ...

mortgage bond

Banking; Investment banking

Also: mortgage-backed bond. Bond issued by central mortgage bond institutions in Switzerland and secured by property mortgages granted by the banks. The bondholders have a lien on the underlying ...