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

weighted average life

Banking; Investment banking

Abbr.: WAL. Maturity of each position in a mortgage pool or other debt instrument portfolio weighted by the value of the position to compute an average maturity for the pool.

capital protection

Banking; Investment banking

Component of certain derivatives that protects the investor against a significant loss on the original investment. Takes the form of a minimum repayment guarantee.

mixed loan

Banking; Investment banking

Type of credit granted to economically weak countries to subsidize the cost of exports and facilitate trade. The loan consists of a tranche on preferential terms (government tranche) and a tranche on ...

payoff diagram

Banking; Investment banking

Also: payout diagram; payoff profile. Graph representing the correlation between the amount paid out for a derivative on maturity and the spot price of the underlying.

balance an account

Banking; Investment banking

Also: close an account. To calculate the balance of an account accrued up to the closing date, including interest and expenses.

capital appreciation fund

Banking; Investment banking

Also: accumulation fund, growth fund. Investment fund that reinvests most of its income. The continuous reinvestment of income further enhances performance thanks to the compound interest effect.

conversion premium

Banking; Investment banking

The difference in price between acquiring shares through conversion of a convertible bond and buying the corresponding number of shares directly on the stock exchange. The conversion premium shows ...