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

illiquidity

Banking; Investment banking

A lack of liquid and easily marketable assets resulting in payment liabilities and obligations not being met on time. See also insolvency.

callable

Banking; Investment banking

Descriptive term applied to a loan or to securities that can be repaid ahead of schedule at the request of the borrower.

zero bond

Banking; Investment banking

Also: zero-coupon bond. Bond that makes no regular interest payment during its lifetime. Instead it is issued at a discount against full repayment at maturity. Zero bonds have been issued on the US ...

real interest rate

Banking; Investment banking

Interest rate calculated by subtracting the annual inflation rate from the stated (or nominal) interest rate. If inflation is higher than the interest rate, then real interest rates are negative.

spot price

Banking; Investment banking

Also referred to as cash price. Current delivery price of a given commodity being traded on the cash market.

sub-participation

Banking; Investment banking

(1) In the securities underwriting business: where banks that are not members of an underwriting syndicate participate in an issue; the sub-participating banks participate to a certain extent in the ...

interest rate risk

Banking; Investment banking

Risk stemming from the influence of interest-rate changes on existing investments and loans and on the costs of future borrowings or liquidity to be invested in the future.