GlossaryPage

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5 Star movement

The Five Star Movement is a populist political party in Italy. It is led by the popular comedian and blogger Beppe Grillo, who was also among its founders in 2009. It is considered anti-establishment, environmentalist, anti-globalist and Eurosceptic.

A

Abenomics

Abenomics refers to the growth-oriented economic policies advocated by Japan’s prime minister Shinzo Abe.

accommodating

The aim of an accommodative monetary policy is to support the economy by means of monetary expansion.

accommodative

The aim of an accommodative monetary policy is to support the economy by means of monetary expansion.

Active share

Active Share measures the percentage of stock holdings in a manager's portfolio that differ from the benchmark index. Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in a portfolio versus the weight of each holding in the benchmark index and dividing by two.

activism

Activism is obtaining a major stake in a company with the aim of making major changes (such as taking it private).

activist

Activism is obtaining a major stake in a company with the aim of making major changes (such as taking it private).

advanced economies

The term advanced economies is used by the International Monetary Fund to describe developed countries.

Airbnb

Airbnb is a firm enabling individuals to let and rent accomodation.

Aktivismus

Activism is obtaining a major stake in a company with the aim of making major changes (such as taking it private).

Algorithm-based, quantitative investment strategies

An algorithm-based investment strategy selects securities based on quantitative analysis. The fund’s management builds computer-based models to determine whether an investment is attractive.

alpha

Alpha refers to returns in excess of a benchmark’s return.

alpha.

Alpha refers to returns in excess of a benchmark’s return.

Alternative for Germany (AfD)

The Alternative for Germany (AfD) is a nationally-conservative and right-wing political party in Germany.

arbitrage

Arbitrage is the practice of exploiting a price differential between two (or more) markets.

arbitraged

Arbitrage is the practice of exploiting a price differential between two (or more) markets.

Article 50

Article 50 of the Lisbon Treaty governs the withdrawal of a member state from the European Union.

ASEAN

The Association of Southeast Asian Nations (ASEAN) is a political and economic organization of 10 countries located in Southeast Asia.

Asian crisis

The Asian crisis affected much of East Asia during 1997-1998, with currency devaluations followed falling stock markets and rising foreign debt burdens.

Asset Owner Disclosure Project

Asset Owner Disclosure Project is an independent not-forprofit global organisation whose objective is to protect retirement savings and other long term investments form the risk posed by climate change by improving disclosure and industry best practise.

B

“bull” market

A bull market is a financial market where prices are rising - usually used in the context of equities markets.

baby boomers

Baby boomers are people born approximately between the years 1946 and 1964, i.e. during the baby boom after World War II.

balance sheets

A balance sheet summarizes a company's assets, liabilities and shareholder equity.

balance-sheet

A balance sheet summarizes a company's assets, liabilities and shareholder equity.

Banca d’Italia

The Banca d'Italia is the central bank of Italy.

Bank of England

The Bank of England (BoE) is the central bank of the United Kingdom.

Bank of England (BoE)

The Bank of England (BoE) is the central bank of the United Kingdom.

Bank of Japan

The Bank of Japan (BOJ) is the central bank of Japan.

Bank of Japan (BOJ)

The Bank of Japan (BOJ) is the central bank of Japan.

Bank of Japan’s (BOJ’s)

The Bank of Japan (BOJ) is the central bank of Japan.

barbell

In finance, a barbell strategy means avoiding assets with an average risk-reward profile. A common example of this would be to invest in long- and short-duration bonds but not in intermediate-duration bonds.

Barclays Euro Aggregate Corporate Total Return Index

The Barclays Euro Aggregate Corporate Total Return Index is a bond index containing euro-denominated investment-grade corporate bonds with a maturity of one year or more only.

Barclays Euro High Yield

The Barclays Euro High Yield Index captures the performance of Euro high-yield debt securities.

Barclays Euro High Yield indices

The Barclays Euro High Yield Index captures the performance of Euro high-yield debt securities.

Barclays iPath S&P 500 VIX Term Future ETN

The Barclays iPath S&P 500 VIX Short-Term Futures ETN is an exchange traded note that traces the performance of the S&P 500 short-term Vix Futures TR index and therefore profits from increasing volatility in U.S. equity markets.

Barclays Pan-European High Yield (Euro) TR Index

The Barclays Euro High Yield Index captures the performance of Euro high-yield debt securities.

Barclays U.S. Aggregate Bond Index

The Barclays U.S. Aggregate Bond Index tracks the performance of U.S. investment-grade bonds.

Barclays U.S. Convertibles

The Barclays U.S. Convertibles Index tracks the performance of U.S. convertible bonds.

Barclays U.S. Corporate High Yield Index

The Barclays U.S. Corporate High Yield Index measures the dollar-denominated, high yield, fixed-rate corporate bond market.

Barclays U.S. High Yield

The Barclays High Yield Index captures the performance of high-yield debt securities.

basis points

One basis point equals 1/100 of a percentage point.

basis points (bps)

One basis point equals 1/100 of a percentage point.

bear market

Technically, a bear market refers to a situation where the index’s value falls at least 20% from a recent high.

behavioral biases

Behavioral biases refer to irrational or flawed mental habits (such as extrapolating from the most recent observations), which can often hurt investment performance.

Benelux

The Benelux Union is the politico-economic union of Belgium, the Netherlands and Luxembourg. The name is an acronym of the starting letters of those countries and is also often used when generally referring to them.

beta

Beta is a measure of volatility that captures a security's systematic risk according to the capital asset pricing model

Bilateral DFIs

Bilateral DFIs are either independent institutions, such as the Netherlands Development Finance Company (FMO), or part of larger bilateral development banks, such as the German Investment and Development Company (DEG), which is part of the German development bank KfW. They are both among the largest DFIs worldwide. Other bilateral DFIs include OPIC, CDC and SWEDFUND.

Bitcoin

Bitcoin is the pioneer amongst the cryptocurrencies.

Bloomberg Dollar Spot Index

The Bloomberg Dollar Spot Index measures the value of the U.S. dollar against 10 global currencies, both developed market and emerging market.

Bloomberg Industries Mid Cap US Retailers Valuation Peers Index

The Bloomberg Industries Mid Cap US Retailers Valuation Peers Index is a rule-based and equal-weighted equity index tracking the price development of mid-size companies of the U.S. retail industry.

Bloomberg Industries US Food Retailers Competitive Index

The Bloomberg Industries US Food Retailers Competitive Index is an equally-weighted equity index reflecting the price development of seven companies operating in the U.S. food-retail industry.

Bloomberg JP Morgan Asia

The Bloomberg JPMorgan Asia Dollar Index tracks the performance of emerging Asia‘s most actively traded currency pairs valued against the U.S. dollar.

BofA Merrill Lynch Euro Non-Financial High Yield Constrained Index

The BofA Merrill Lynch Euro Non-Financial High Yield Constrained Index tracks the performance of euro-denominated below investment-grade corporate debt publicly issued in the eurobond or euro-domestic markets by non-financial issuers, capping issuer exposure at 3%.

BofA Merrill Lynch European High Yield Index

The BofA Merrill Lynch European High-Yield Bond Index is a U.S. high-yield index that also includes zero-coupon bonds and payment in kind bonds.

BofA Merrill Lynch US High Yield Index

The BofA Merrill Lynch US High Yield Index tracks the performance of dollar-denominated below investment grade, including zero-coupon and payment-in-kind (PIK) bonds.

BOJ

The Bank of Japan (BOJ) is the central bank of Japan.

bps

One basis point equals 1/100 of a percentage point.

Bretton Woods

Bretton Woods in the U.S. State of New Hampshire was the site of an international conference in 1944, which established a system of largely stable currency exchange rates between leading Western nations, an arrangment that lasted until 1973.

Brexit

Brexit is a combination of the words "Britain" and "Exit" and describes the possible exit of the United Kingdom of the European Union.

British pound

The pound sterling (GBP), or simply the pound, is the official currency of the United Kingdom and its territories.

Brookings Institution

The Brookings Institution is one of Washington's oldest think tanks, which conduct research on social sciences, economics, governance and foreign policy.

bubble

A bubble is characterized by prices surging higher than warranted by fundamentals, followed by a drastic drop in prices as a massive sell-off occurs.

budget/debt limit

Budget limits are determined by annual budgets or “stop gap” temporary legislation; there is also a limit on the amount of debt that can be issued by the U.S. Treasury, legislated by Congress.

bull market

A bull market is a financial market where prices are rising - usually used in the context of equities markets.

bull-market

A bull market is a financial market where prices are rising - usually used in the context of equities markets.

Bund

Bunds is a commonly used term for bonds issued by the German federal government with a maturity of 10 years.

Bundestag

The German Bundestag is the national parliament of the Federal Republic of Germany. It is the lower house of the two legislative chambers, the German Bundesrat being the upper house.

Bunds

Bunds is a commonly used term for bonds issued by the German federal government with a maturity of 10 years.

buyout

A buyout is a purchase of shares in order to gain controlling interest in another company.

buyouts

A buyout is a purchase of shares in order to gain controlling interest in another company.

C

CAC 40

The CAC 40 is a French stock-market index, representing the 40 most significant values among the 100 companies with the highest market cap on the Euronext Paris.

capex

Capital expenditure (Capex) are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

capital controls

Capital controls are residency - based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital account.

capital expenditure

Capital expenditure (Capex) are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

capital expenditure (capex)

Capital expenditure (Capex) are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

capital-expenditure (capex)

Capital expenditure (Capex) are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

capital-market risk

Capital-market risks refer to any risk factors that can have a material impact on the valuations of financial assets and impact real economic activity.

Capitol Hill

Capitol Hill in Washington, D.C. is the place where the U.S. Congress meets; it also colloquially used to refer to both chambers of Congress.

Carbon footprint

Carbon footprint is the sum of GHG emissions measured in CO2 equivalents for a specified company, product or service.

carry

The carry (of an asset) is the cost or benefit from holding the asset.

cash flow

A company’s cash flow is comprised of its inflows and outflows which arise from financing, operational or investing activities.

cash flows

A company’s cash flow is comprised of its inflows and outflows which arise from financing, operational or investing activities.

CBO

The Congressional Budget Office (CBO) is a nonpartisan agency which is responsible for conducting objective, impartial analysis of budgetary and economic issues to support the Congressional budget process.

CBOE S&P 500 PutWrite Index

The CBOE S&P 500 PutWrite Index measures the performance of a hypothetical portfolio that sells S&P 500 Index put options on a weekly basis against collateralized cash reserves held in a money market account.

CBOE SPX Volatility Index

The CBOE Volatility Index (Vix) is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index. It is a popular measure of the volatility of the S&P 500 as implied in the short term option prices on the index.

CBOE SPX Volatility Index (VIX)

The CBOE Volatility Index (Vix) is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index. It is a popular measure of the volatility of the S&P 500 as implied in the short term option prices on the index.

CBOE/CME FX British Pound Volatility Index

The CBOE/CME FX British Pound Volatility Index measures the market's expectation of 30-day currency-related volatility for the British pound.

Census

The United States Census refers to the counting of the population, which is used to determine representation in the House of Representatives as mandated by the Constitution. It takes place every ten years.

CGAP

CGAP stands for the Consultative Group to Assist the Poor and is a global partnership of 34 leading organisations that seek to advance financial inclusion.

checks and balances

Checks and balances in the U.S. political system primarily result from separation of power between three branches of the federal government: legislative, executive and judicial.

Chinese yuan (CNY)

The Chinese yuan (CNY) is legal tender on the Chinese mainland and the unit of account of the currency, Renminbi (RMB).

CHIP

The Children's Health Insurance Program (CHIP) provides health coverage to eligible children, through both Medicaid and separate CHIP programs. CHIP is administered by states, according to federal requirements and is funded jointly by states and the federal government.

Christian Democratic Union (CDU)

The Christian Democratic Union of Germany (CDU) is a Christian democratic and liberal-conservative political party in Germany that is considered center/center-right in the German political landscape. The CDU is the sister party of the Christian Social Union in Bavaria (CSU), which operates only in the state of Bavaria.

Christian Democratic Union of Germany (CDU)

The Christian Democratic Union of Germany (CDU) is a Christian democratic and liberal-conservative political party in Germany that is considered center/center-right in the German political landscape. The CDU is the sister party of the Christian Social Union in Bavaria (CSU), which operates only in the state of Bavaria.

Christian Social Union (CSU)

The Christian Social Union in Bavaria (CSU) is a Christian democratic and conservative political party in Germany that only operates in Bavaria and that is considered center-right in the German political landscape. The CSU is the sister party of the Christian Democratic Union of Germany (CDU), which operates in the rest of Germany.

Christian Social Union in Bavaria (CSU)

The Christian Social Union in Bavaria (CSU) is a Christian democratic and conservative political party in Germany that only operates in Bavaria and that is considered center-right in the German political landscape. The CSU is the sister party of the Christian Democratic Union of Germany (CDU), which operates in the rest of Germany.

Clean technologies

Clean technologies are aimed at reducing or eliminating environmental pollution.

Climate change

Climate change is a long-term shift in the planet’s weather patterns or average temperatures. Scientific research shows that the average temperature of the planet’s surface has risen by 0.89C from 1901 to 2012.

cloud computing

Cloud computing encompasses technologies and services that offer the dynamic and flexible use of a third party's IT infrastructure.

CNX Nifty Index

The S&P CNX Nifty Index is a market-capitalization-weighted index that tracks India's 50 most important listed companies.

CNY

The Chinese yuan (CNY) is legal tender on the Chinese mainland and the unit of account of the currency, Renminbi (RMB).

CO2

CO2 refers to carbon dioxide, the most common greenhouse gas.

COE

Cost of equity (CoE) is the return (often expressed as a rate of return) a firm theoretically pays to its equity investors, to compensate for the risk they undertake by investing their capital.

collateral

In some transactions, collateral is used to protect the lender against the borrower's default. In case the borrower defaults on the interest or principal payment, the collateral can be used to offset the loan.

Commander-in-Chief

The Commander-in-Chief is supreme commander of the armed forces of a nation. In the United States, this power is vested with the President as the head of the executive branch of the federal government.

commercial mortgage-backed securities (CMBS)

Commercial mortgage-backed securities are mortgage-backed security backed by commercial mortgages rather than residential real estate.

Commodity trading advisor (CTA)

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

commodity trading advisors

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

Commodity Trading Advisor-Strategien (CTA-Strategien)

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

Commodity-trading-advisor (CTA)

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

Common Equity Tier 1 (CET1) ratio

Common Equity Tier 1 (CET1) ratio is a measurement of a bank's financial strength.

Concentration

Portfolio concentration measures single stock exposures of a portfolio. There are different metrics to measure concentration. A few examples are:

Congress

The United States Congress is the legislature of the federal government. It is comprised of the Senate and the House of Representatives, consisting of 435 Representatives and 100 Senators.

Consensus forecasts

express the average of a range of forecasts from different analysts or brokers on a given data point.

Conservatives

The Conservative party is a center-right political party in the United Kingdom.

constitutional referendum

Italy’s constitutional referendum was held on December 4th, 2016. By a surprisingly large margin, voters turned down far-reaching changes intended to make Italy more governable. The bill was proposed by then prime minister Matteo Renzi, who promptly resigned.

consumer discretionary

Consumer discretionary is a sector of the economy that sells non-essential goods and services.

consumer-discretionary

Consumer discretionary is a sector of the economy that sells non-essential goods and services.

Continuing Resolution (CR)

The Continuing Resolution (CR) is a legislative bill that provides money for specific U.S. federal government departments, agencies and programs

contrarian

Contrarian investing is an investment strategy that is characterized by positioning oneself in the opposite direction of prevailing sentiment.

contrarianism

Of a position or belief of an investment style that goes against prevailing market trends by buying poorly performing assets and then selling when they perform well.

convexity

Convexity describes a non-linear relation of a dependent variable from a variable that approaches asymptotically a certain value. The relationship of a bond price from a change in interest rates or of volatility from the remaining time period are two examples.

core

The core is a central or very important part of a region. In the context of the Eurozone, core refers to countries like Germany or France.

core government bonds

Core government bonds are debt securities issued by especially credit-worthy governments both within the Eurozone and in other developed markets.

core inflation

Core inflation excludes items which can be susceptible to volatile price movements, e.g. food and energy.

Corporate governance

The methods by which corporations are run and controlled

corporate-governance

The methods by which corporations are run and controlled

correlated

Correlation is a measure of how closely two variables move together over time.

correlation

Correlation is a measure of how closely two variables move together over time.

correlations

Correlation is a measure of how closely two variables move together over time.

cost of equity (CoE)

Cost of equity (CoE) is the return (often expressed as a rate of return) a firm theoretically pays to its equity investors, to compensate for the risk they undertake by investing their capital.

coupon

Coupons are interest rate payments made on a bond.

coupons

Coupons are interest rate payments made on a bond.

covenant

Covenants designate contractual obligations or restrictions intended to protect the financial interests of creditors.

coverage

Coverage broadly defines the degree to which an issuers earnings, cash flow and assets allow it to cover interest payments and other liabilities.

covered bonds

Covered bonds are securities similar to asset-backed securities (ABS) which are covered with public-sector or mortgages loans and remain on the issuer's balance sheet.

credit bubbles

A bubble is characterized by prices surging higher than warranted by fundamentals, followed by a drastic drop in prices as a massive sell-off occurs.

credit strategies

Credit strategies aim at generating additional returns through the careful screening and selection of particular fixed-income products.

cryptocurrencies

Cryptocurrencies are a new generation of digital currencies and payment systems that rely on cryptotechnology and distributed data management. They are privately organised and not bound to oversight by central banks or other official institutions. The pioneer and still most traded cryptocurrency is the bitcoin.

cryptocurrency

Cryptocurrencies are a new generation of digital currencies and payment systems that rely on cryptotechnology and distributed data management. They are privately organised and not bound to oversight by central banks or other official institutions. The pioneer and still most traded cryptocurrency is the bitcoin.

cryptocurrency's

Cryptocurrencies are a new generation of digital currencies and payment systems that rely on cryptotechnology and distributed data management. They are privately organised and not bound to oversight by central banks or other official institutions. The pioneer and still most traded cryptocurrency is the bitcoin.

CTA

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

CTAs

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

CTAs (commodity trading advisors)

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

currency pairs

In foreign exchange the currency pair refers to two currencies whose values are being compared.

currency pegs

Currency peg is a country’s or government's exchange-rate policy of pegging the central bank's rate of exchange to another country's currency.

current account

The current account includes trade in goods and services, a net-factor-income balance (e.g. earnings on foreign investments and cash transfers from individuals working abroad) and transfers (e.g. foreign aid). It is a part of the balance of payments.

current-account

The current account includes trade in goods and services, a net-factor-income balance (e.g. earnings on foreign investments and cash transfers from individuals working abroad) and transfers (e.g. foreign aid). It is a part of the balance of payments.

D

Dallas Fed International House Price Index Database

The Dallas Fed International House Price Index Database for Germany is a price index compiled by the Dallas Fed which includes German real estate.

Dallas Fed International House Price Index Database for Germany

The Dallas Fed International House Price Index Database for Germany is a price index compiled by the Dallas Fed which includes German real estate.

Dax

The Dax is a blue-chip stock-market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

DCF

Discounted cash flow is a method used to gauge the value of a company by finding the present value of projected future cash flows.

debt ratio

The debt ratio is a company's total debt divided by its assets.

debt ratios

The debt ratio is a company's total debt divided by its assets.

default

Default is the failure to meet the legal obligations of a loan, for example when a corporation or government fails to pay a bond which has reached maturity. A national or sovereign default is the failure or refusal of a government to repay its national debt.

default rate

The default rate refers to the proportion of borrowers who cannot service their loans.

default rates

The default rate refers to the proportion of borrowers who cannot service their loans.

default-rate

The default rate refers to the proportion of borrowers who cannot service their loans.

defaults

Default is the failure to meet the legal obligations of a loan, for example when a corporation or government fails to pay a bond which has reached maturity. A national or sovereign default is the failure or refusal of a government to repay its national debt.

defensive

A defensive investment strategy is a conservative method of portfolio allocation and management. It aims at choosing and managing assets in a way that generates stable returns and tries to minimize the risk of losing capital.

deflation

Deflation is a sustained decrease in the general price level of goods and services.

deflationary

Deflation is a sustained decrease in the general price level of goods and services.

Democratic

The Democratic Party (Democrats) is one of the two political parties in the United States. It is generally to the left of its main rival, the Republican Party.

Democrats

The Democratic Party (Democrats) is one of the two political parties in the United States. It is generally to the left of its main rival, the Republican Party.

deposit facility rate

The deposit rate is the rate banks receive when they make overnight deposits with the ECB

depreciation

In relation to currencies, depreciation refers to a loss of value against another currency over time.

devaluation

Devaluation is the forced reduction of the value of a currency against other currencies.

devalue

Devaluation is the forced reduction of the value of a currency against other currencies.

devaluing

Devaluation is the forced reduction of the value of a currency against other currencies.

developed market

A developed market (DM) is a country fully developed in terms of its economy and capital markets.

developed markets

A developed market (DM) is a country fully developed in terms of its economy and capital markets.

Developed-market

A developed market (DM) is a country fully developed in terms of its economy and capital markets.

Development Finance Institution

Development Finance Institution (DFI) National and international development finance institutions (DFIs) are specialised development banks or subsidiaries set up to support private sector development in developing countries. They are usually majority-owned by national governments and source their capital from national or international development funds or benefit from government guarantees. This ensures their creditworthiness, which enables them to raise large amounts of money on international capital markets and provide financing on very competitive terms.

Direct Lending

Direct lending to corporates does not use an intermediary such as a broker or investment bank.

discretionary

Discretionary macro strategies are investment strategies that aim at exploiting macroeconomic, policy or political changes.

Discretionary Global Macro

Discretionary macro strategies are investment strategies that aim at exploiting macroeconomic, policy or political changes.

discretionary macro

Discretionary macro strategies are investment strategies that aim at exploiting macroeconomic, policy or political changes.

discretionary macro strategies

Discretionary macro strategies are investment strategies that aim at exploiting macroeconomic, policy or political changes.

discretionary-macro strategies

Discretionary macro strategies are investment strategies that aim at exploiting macroeconomic, policy or political changes.

distressed strategies

A distressed strategy is an investment strategy that seeks profit by investing in companies or other investment opportunities that face financial difficulties.

diversification

Diversification refers to the dispersal of investments across asset types, geographies and so on with the aim or reducing risk or boosting risk-adjusted returns.

Divestment programmes

Divestment programmes are the withdrawing or withholding of financial capital at an industry, sector or country level.

dividend

A dividend is a distribution of a portion of a company’s earnings to its shareholders.

dividend yields

The dividend yield is the dividend that a company pays out each year divided by its share price.

dividend-per-share (DPS)

Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding.

dividends

A dividend is a distribution of a portion of a company’s earnings to its shareholders.

dollar

The U.S. dollar (USD) is the official currency of the United States and its overseas territories.

Dollar Index

The Bloomberg JPMorgan Asia Dollar Index tracks the performance of emerging Asia‘s most actively traded currency pairs valued against the U.S. dollar.

dotcom bubble

The dotcom bubble refers to the rapid rise and eventual collapse of equity market valuations of technology stocks from the late 1990s to 2001.

Dovish

Doves are in favor of an expansive monetary policy.

Dow Jones Brookfield Global Infrastructure Index

The Dow Jones Brookfield Global Infrastructure Composite Index measures the stock performance of pure-play infrastructure companies (defined as those deriving 70% of their cash flows from infrastructure business lines) worldwide.

Dow Jones Equal Weight U.S. Issued Corporate Bond Index

The Dow Jones Equal Weight U.S. Issued Corporate Bond Index is a bond index tracking the totals returns of 96 large and liquid U.S. corporate bonds with investment-grade rating.

Dow Jones Technology Titans 30 Index

The Dow Jones Technology Titans 30Index is a global equity index reflecting the price development of the world's 30 biggest technology firms by market capitalization.

drawdowns

A drawdown is the average, maximum loss in a given year.

Dry powder

Dry powder, in a private-equity context, refers to cash or other very liquid reserves that can easily be deployed for investment.

duration

Duration is a measure expressed in years that adds and weights the time periods in which a bond returns cash to its holder. It is used to calculate a bond's sensitivity towards interest-rate changes.

durations

Duration is a measure expressed in years that adds and weights the time periods in which a bond returns cash to its holder. It is used to calculate a bond's sensitivity towards interest-rate changes.

Dynamic Leisure & Entertainment Intellidex Index

The Dynamic Leisure & Entertainment Intellidex Index is comprised of stocks of 30 U.S. companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries.

E

(ECB)

The European Central Bank (ECB) is the central bank for the Eurozone.

earnings per share (EPS)

Earnings per share (EPS) is calculated as a company's net income minus dividends of preferred stock, all divided by the total number of shares outstanding.

earnings-per-share (EPS)

Earnings per share (EPS) is calculated as a company's net income minus dividends of preferred stock, all divided by the total number of shares outstanding.

EBITDA

EBITDA (earnings, before interest expenses, taxes, depreciation and amortization) is an accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation and amortization are subtracted.

ECB

The European Central Bank (ECB) is the central bank for the Eurozone.

ECB’s

The European Central Bank (ECB) is the central bank for the Eurozone.

Economic price-to-earnings (Econ. P/E)

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

Electoral College

The Electoral College is the body which elects the President and the Vice President of the United States. It is composed of electors from each state equal to that state’s representation in Congress.

EM

An emerging market (EM) is a country that has some characteristics of a developed market in terms of market efficiency, liquidity and other factors, but does not meet standards to be a developed market.

EM (emerging markets)

Emerging markets (EM) are economies not yet fully developed in terms of, amongst others, market efficiency and liquidity.

Emergency Liquidity Assistance (ELA)

ECB’s Emergency Liquidity Assistance (ELA) is a measure whereby a national central bank of the Eurosystem grants central-bank money to a solvent financial institution that is experiencing temporary liquidity problems.

emerging

Emerging markets (EM) are economies not yet fully developed in terms of, amongst others, market efficiency and liquidity.

emerging markets

Emerging markets (EM) are economies not yet fully developed in terms of, amongst others, market efficiency and liquidity.

emerging markets (EM)

An emerging market (EM) is a country that has some characteristics of a developed market in terms of market efficiency, liquidity and other factors, but does not meet standards to be a developed market.

emerging-market

Emerging markets (EM) are economies not yet fully developed in terms of, amongst others, market efficiency and liquidity.

Emerging-market (EM)

An emerging market (EM) is a country that has some characteristics of a developed market in terms of market efficiency, liquidity and other factors, but does not meet standards to be a developed market.

emerging-markets

An emerging market (EM) is a country that has some characteristics of a developed market in terms of market efficiency, liquidity and other factors, but does not meet standards to be a developed market.

Employment Cost Index

The Employment Cost Index measures the growth in U.S. employee compensation in wages and benefits.

environmental, social and governance (ESG)

Environmental, Social and Governance (ESG) issues refer to non-financial issues that may affect the sustainability of an investment.

EPS

Earnings per share (EPS) is calculated as a company's net income minus dividends of preferred stock, all divided by the total number of shares outstanding.

equity long/short

Long/short equity strategies are investment strategies that take a long position in individual equities or sectors that are expected to gain in value and a short position in those that are expected to fall in value.

equity markets

A market in which equities (stocks) are traded. The term can be used to refer to an actual market (e.g. the New York Stock Exchange) or to general trends in equity trading. Equities are securities which certify rights of ownership of (parts of ) a company.

Equity tier 1 ratios

The Equity tier 1 ratio relate a company's equity to its risk-weighted assets. It is an international standard measure for a bank's financial solvency.

equity-long/short

Long/short equity strategies are investment strategies that take a long position in individual equities or sectors that are expected to gain in value and a short position in those that are expected to fall in value.

equity-market-neutral

Equity-market-neutral investing strategies aim to deliver superior returns by balancing stock picks as to avoid market-risk exposure.

equity-market-neutral investing strategies

Equity-market-neutral investing strategies aim to deliver superior returns by balancing stock picks as to avoid market-risk exposure.

ESG

refers to Environmental, Social and Corporate Governance and has emerged as the term to describe the issues that investors are considering in the context of corporate behavior. No definitive list of ESG factors exists but they typically display one or more of the following characteristics: (i) issues that have traditionally been considered non-financial or not material; (ii) a medium or long-term time horizon; (iii) qualitative objectives that are not readily quantifiable in monetary terms; (iv) externalities not well captured by market mechanisms; (v) a changing regulatory or policy framework; (vi) patterns arising throughout a company’s supply chain; and (vii) a public-concern focus. refers to Environmental, Social and Corporate Governance and has emerged as the term to describe the issues that investors are considering in the context of corporate behavior. No definitive list of ESG factors exists but they typically display one or more of the following characteristics: (i) issues that have traditionally been considered non-financial or not material; (ii) a medium or long-term time horizon; (iii) qualitative objectives that are not readily quantifiable in monetary terms; (iv) externalities not well captured by market mechanisms; (v) a changing regulatory or policy framework; (vi) patterns arising throughout a company’s supply chain; and (vii) a public-concern focus.

ESG integration

the systematic and explicit inclusion by investment managers of ESG risks and opportunities into security analysis, valuation and investment decision.

ESG process

Environmental, Social and Governance (ESG) issues refer to non-financial issues that may affect the sustainability of an investment.

ESG risks

refer to Environmental, Social and Corporate Governance issues that may have a negative impact on the security analysis, valuation and investment decision. Some of those ESG themes that can have a meaningful impact on financial returns are climate change, resource scarcity, labor rights and corporate governance.

ETF

An exchange-traded fund (ETF) is a security that tracks an index or asset like an index fund, but trades like a stock on an exchange.

ethereum

Ethereum is a cryptocurrency.

Ethical investment

Ethical investment is an investment philosophy guided by moral values, ethical codes or religious beliefs. Investment decisions therefore include non-economic criteria and typically are associated with negative (or exclusionary) screening.

EU

The European Union (EU) is a political and economic union of 28 member states located primarily in Europe.

EUR

The euro (EUR) is the common currency of states participating in the Economic and Monetary Union and is the second most held reserve currency in the world after the dollar.

euro

The euro (EUR) is the common currency of states participating in the Economic and Monetary Union and is the second most held reserve currency in the world after the dollar.

Euro Stoxx 50 Index

The Euro Stoxx 50 is an index that tracks the performance of blue-chip stocks in the Eurozone.

Euro Stoxx

The Euro Stoxx is a broad-based equity index comprising 301 constituents from the Eurozone.

Euro Stoxx 50

The Euro Stoxx 50 is an index that tracks the performance of blue-chip stocks in the Eurozone.

Euro Stoxx 50 Index

The Euro Stoxx 50 is an index that tracks the performance of blue-chip stocks in the Eurozone.

European Central Bank

The European Central Bank (ECB) is the central bank for the Eurozone.

European Central Bank (ECB

The European Central Bank (ECB) is the central bank for the Eurozone.

European Central Bank (ECB)

The European Central Bank (ECB) is the central bank for the Eurozone.

European Central Bank’s

The European Central Bank (ECB) is the central bank for the Eurozone.

European Central Bank's

The European Central Bank (ECB) is the central bank for the Eurozone.

European Central Bank's (ECB's)

The European Central Bank (ECB) is the central bank for the Eurozone.

European Commission

The European Commission (EU Commission) is the executive body of the European Union (EU) which represents the interests of the EU.

European Court of Justice (ECJ)

European Court of Justice (ECJ) the highest court in the European Union in matters of European Union law.

European Monetary Union (EMU)

The Eurozone is formed of 19 European Union member states that have adopted the euro as their common currency and sole legal tender.

European Stability Mechanism (ESM)

The European Stability Mechanism (ESM) is an international organization established in September 2012 to provide financial assistance to member states of the Eurozone in financial difficulty.

European Union

The European Union (EU) is a political and economic union of 28 member states located primarily in Europe.

European Union (EU)

The European Union (EU) is a political and economic union of 28 member states located primarily in Europe.

EuroStoxx 50

The Euro Stoxx 50 is an index that tracks the performance of blue-chip stocks in the Eurozone.

EuroStoxx Select Dividend 30 Index

The Euro Stoxx Select Dividend 30 is an index that tracks high-dividend-yielding companies across 12 Eurozone countries.

Eurozone

The Eurozone is formed of 19 European Union member states that have adopted the euro as their common currency and sole legal tender.

Eurozone periphery

Periphery countries are less developed than the core countries of a specific region. In the Eurozone, the europeriphery consists of the economically weaker countries such as Greece, Portugal, Italy, Spain and Ireland.

Eurozone’s

The Eurozone is formed of 19 European Union member states that have adopted the euro as their common currency and sole legal tender.

event-driven investing strategies

Event-driven investing strategies seek to exploit pricing inefficiencies that may occur before or after a corporate event, such as an earnings call, bankruptcy, merger, acquisition or spinoff.

Event-driven strategies

Event-driven investing strategies seek to exploit pricing inefficiencies that may occur before or after a corporate event, such as an earnings call, bankruptcy, merger, acquisition or spinoff.

excess capacity

Excess capacity relates to an economy's production factors that are not being used as supply exceeds demand

exchange-rate

The exchange rate is the rate at which two currencies are traded.

F

Fed

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

Fed rate

The federal funds rate is the interest rate, set by the Fed, at which banks lend money to each other, usually on an overnight basis.

Fed’s

The Federal Reserve System or Fed, which serves as the U.S. central bank, was established in 1913, consisting of the Federal Reserve Board with seven members headquartered in Washington, D.C., and twelve Reserve Banks located in major cities throughout the United States.

Federal funds rate

The federal funds rate is the interest rate, set by the Fed, at which banks lend money to each other, usually on an overnight basis.

federal funds rates

The federal funds rate is the interest rate, set by the Fed, at which banks lend money to each other, usually on an overnight basis.

Federal Open Market Committee

The Federal Open Market Committee (FOMC) is the committee that oversees the open-market operations (purchases and sales of securities that are intended to steer interest rates and market liquidity) of the U.S. Federal Reserve.

Federal Open Market Committee (FOMC)

The Federal Open Market Committee (FOMC) is the committee that oversees the open-market operations (purchases and sales of securities that are intended to steer interest rates and market liquidity) of the U.S. Federal Reserve.

Federal Reserve

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

Federal Reserve (Fed)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

Federal Reserve’s (Fed’s)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

fiat money

Fiat money carries no intrinsic value and is not tied to any commodity.

Fiduciary duties

emerge from business-relationships in which one party (asset manager) is entrusted with managing the assets/money of another party (client). The most important fiduciary duties are to act in the best interest of the client, to avoid any conflicts of interest (duty of loyalty) and to act with due care, skill and diligence (duty of prudence). (UN PRI-definition)

Fifth Republic

France’s current system of government, the Fifth Republic, was established by Charles de Gaulle in 1958. It is a republican system with a strong head of state.

filibuster

A filibuster is a procedure in the U.S. Congress, in which the debate on a proposed piece of legislation is extended, potentially leading to entirely preventing the legislation's finalization.

financial crisis

The financial crisis refers to the period of market turmoil that started in 2007 and worsened sharply in 2008 with the collapse of Lehman Brothers.

Financial inclusion

Financial inclusion is the proportion of individuals and firms that use formal financial services. It is therefore different to access to finance since some people may have access, but, choose not to use financial services.

fintech

Fintech includes many technology startups offering traditional financial services, as well as banks offering new services by embracing modern technology.

fiscal

Fiscal policy describes government spending policies that influence macroeconomic conditions. Through fiscal policy, the government attempts to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy.

fiscal policy

Fiscal policy describes government spending policies that influence macroeconomic conditions. Through fiscal policy, the government attempts to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy.

fiscal union

A fiscal union is the integration of the fiscal policy of several nations. Decisions about the collection and expenditure of taxes are taken by common institutions.

Five Star

The Five Star Movement is a populist political party in Italy. It is led by the popular comedian and blogger Beppe Grillo, who was also among its founders in 2009. It is considered anti-establishment, environmentalist, anti-globalist and Eurosceptic.

Five Star Movement

The Five Star Movement is a populist political party in Italy. It is led by the popular comedian and blogger Beppe Grillo, who was also among its founders in 2009. It is considered anti-establishment, environmentalist, anti-globalist and Eurosceptic.

Five-Star Movement

The Five Star Movement is a populist political party in Italy. It is led by the popular comedian and blogger Beppe Grillo, who was also among its founders in 2009. It is considered anti-establishment, environmentalist, anti-globalist and Eurosceptic.

five-year plan

With China‘s five-year plan the Chinese Communist Party sets out growth and other economic and social targets, helping define government policy priorities.

flash crashes

Flash crashes are short-lived market falls which may be due to model-based trading strategies or market manipulation.

floaters

Floater is short for floating-rate notes which are bonds with a variable coupon that is tied to a reference rate.

foreign direct investment

Foreign direct investment (FDI) aims at establishing or having control of an enterprise in a foreign country, unlike indirect investment in a sector through financial instruments.

foreign exchange (FX)

FX or foreign exchange is the currency — literally foreign money — used in the settlement of international trade between countries.

Forza Italia

The current Forza Italia, established in 2013, is a centre-right political party in Italy with populist elements. Its leader is once again Silvio Berlusconi, who also led the original Forza Italia, established in 1993.

franc

The French franc was France’s currency before the euro was adopted in 1999.

Free cash flow

Free Cash Flow (FCF) is a measure of financial performance calculated as operating cash flow minus capital expenditures. It shows how much cash a company is able to generate after deducting the money required to maintain or expand its asset base.

free cash flow (FCF)

Free Cash Flow (FCF) is a measure of financial performance calculated as operating cash flow minus capital expenditures. It shows how much cash a company is able to generate after deducting the money required to maintain or expand its asset base.

free cash-flow

Free Cash Flow (FCF) is a measure of financial performance calculated as operating cash flow minus capital expenditures. It shows how much cash a company is able to generate after deducting the money required to maintain or expand its asset base.

free-cash-flow

Free Cash Flow (FCF) is a measure of financial performance calculated as operating cash flow minus capital expenditures. It shows how much cash a company is able to generate after deducting the money required to maintain or expand its asset base.

free-cash-flow (FCF)

Free Cash Flow (FCF) is a measure of financial performance calculated as operating cash flow minus capital expenditures. It shows how much cash a company is able to generate after deducting the money required to maintain or expand its asset base.

Frexit

Frexit describes plans to lead France out of the European Union and the Eurozone.

Front National

The National Front (Front National, FN) is a far-right political party in France, founded in 1972 by ultra-nationalist Jean-Marie Le Pen and currently led by his daughter, Marine Le Pen.

Front National (FN)

The National Front (Front National, FN) is a far-right political party in France, founded in 1972 by ultra-nationalist Jean-Marie Le Pen and currently led by his daughter, Marine Le Pen.

FTSE 100

The FTSE 100 is an index that tracks the performance of the 100 major companies trading on the London Stock Exchange.

FTSE 100 Index

The FTSE 100 is an index that tracks the performance of the 100 major companies trading on the London Stock Exchange.

FTSE 100 Index

The FTSE 100 is an index that tracks the performance of the 100 major companies trading on the London Stock Exchange.

FTSE 250

The FTSE 250 is a weighted index of the 101st to the 350th largest companies (by capitalization) listed on the London Stock Exchange.

FTSE EPRA/NAREIT Developed REITs Germany Index (EUR)

The FTSE EPRA/NAREIT Developed REITs Germany Index measures the performance of listed German real estate companies and investment trusts.

fundamental

Fundamentals are data giving information about the general well-being of companies, securities or currencies and serving for the subsequent valuation of these as an investment opportunity.

fundamentals

Fundamentals are data giving information about the general well-being of companies, securities or currencies and serving for the subsequent valuation of these as an investment opportunity.

funding currencies

A funding currency is a currency in which investors borrow (often because of low interest rates) to finance investments in other currencies thought to offer higher carry.

futures

A futures contract is a standardized, contractual agreement to trade a financial instrument or commodity at a pre-determined price in the future.

futures contracts

A futures contract is a standardized, contractual agreement to trade a financial instrument or commodity at a pre-determined price in the future.

G

"Greenback

Greenback is a commonly used expression for the U.S. dollar.

G10

The Group of 10 (G10) refers to a group of eleven leading industrialized economies in the world. The member countries are: Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, United Kingdom and United States. They meet to consult and co-operate on economic, monetary and financial matters.

G20

Group of 20 largest industrialized and emerging economies in the world. These include the G8 countries, and the EU, Argentina, Australia , Brazil, China , India, Indonesia, Mexico , Saudi Arabia, South Africa , South Korea and Turkey.

G7

The Group of 7 (G7) consists of the finance ministers and central-bank governors of the seven major advanced economies as reported by the International Monetary Fund: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. They meet to discuss primarily economic issues.

G7 countries

The Group of 7 (G7) consists of the finance ministers and central-bank governors of the seven major advanced economies as reported by the International Monetary Fund: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. They meet to discuss primarily economic issues.

G7 nations

The Group of 7 (G7) consists of the finance ministers and central-bank governors of the seven major advanced economies as reported by the International Monetary Fund: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. They meet to discuss primarily economic issues.

GAAP

Generally accepted accounting principles, or GAAP, are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting.

GBP

The pound sterling (GBP), or simply the pound, is the official currency of the United Kingdom and its territories.

GDP

The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

GDP per capita

Gross domestic product (GDP) per capita is gross domestic product divided by a country’s population.

geopolitical risks

Geopolitical risk is a risk that an investment’s returns could suffer as a result of political changes or instability in a country.

German Bund

Bunds is a commonly used term for bonds issued by the German federal government with a maturity of 10 years.

German Bunds

Bunds is a commonly used term for bonds issued by the German federal government with a maturity of 10 years.

Germany's Liberals (FDP)

The Free Democratic Party (FDP), also referred to as the "Liberals",is a market-friendly and social-liberal political party in Germany that advocates human rights, civil and economic liberalism and that is considered centre-right in the German political landscape.

gerrymander

Gerrymandering refers to the deliberate creation of voting districts in order to maximize the electoral advantage of one of the parties.

Gilts

Gilts are bonds that are issued by the British Government.

Global Industry Classification Standard

The Global Industry Classification Standard (GICS) is a four-tiered scheme to hierarchically classify firms by the sector and industry these firms primarily operate in.

goldilocks

The term Goldilocks economy refers to a state of the economy, where there is neither a threat of inflation due to an overheating economy, nor a threat of a recession.

Goldilocks scenario

The term Goldilocks economy refers to a state of the economy, where there is neither a threat of inflation due to an overheating economy, nor a threat of a recession.

government funding bill

The government funding bill is a legislation that funds U.S. government and agency operations, via interim or fullyear allocations.

Government Pension Investment Fund (GPIF)

The Government Pension Investment Fund (GPIF) is the pension fund for Japanese public sector employees established by the Japanese government, which is the largest fund in the world.

government-bond yields

Government (sovereign) debts/bonds are debt/bonds issued and owed by a central government

grassroots

A grassroots movement refers to spontaneous bottom-up political organizations by ordinary voters.

Great Recession

The Great Recession refers to the prolonged economic downturn in much of the world after the financial crisis of 2007-08.

Green Party

The Alliance 90/The Greens, also referred to as the "Greens", is a environmentalist political party in Germany that is considered center-left in the German political landscape.

greenback

Greenback is a commonly used expression for the U.S. dollar.

Greenhouse gases (GHG)

Greenhouse gases (GHG) are gases, such as carbon dioxide, methane and nitrous oxide, that allow sunlight to enter the atmosphere freely, but when sunlight strikes the Earth’s surface, some of these gases are reflected back towards space as infrared radiation (heat) which greenhouse gases absorb.

Greens

The Alliance 90/The Greens, also referred to as the "Greens", is a environmentalist political party in Germany that is considered center-left in the German political landscape.

Grexit

Grexit is the term used to describe a Greek exit from the Eurozone, either deliberately or accidentally.

gross domestic product

The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

Gross domestic product (GDP)

The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

gross-domestic-product (GDP)

The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

H

hard-currency

Hard-currency bonds are bonds issued by legal entities in a hard currency such as the U.S. dollar, euro or Swiss franc.

hard-currency bonds

Hard-currency bonds (debt) are bonds (debt) issued in a historically stable currency such as the U.S. dollar or the euro.

hard-currency debt

Hard-currency debt is held by emerging-market corporates or sovereigns but denominated in hard currencies (e.g. U.S. dollars) rather than local currencies.

hard-ecurrency

Hard-currency bonds are bonds issued by legal entities in a hard currency such as the U.S. dollar, euro or Swiss franc.

hawkish

Hawks are in favor of a restrictive monetary policy.

hedge

A hedge is an investment to reduce the risk of adverse price movements in an asset.

hedge funds

A hedge fund is an investment vehicle less regulated than a mutual fund that pools capital from different investors and uses different investment strategies.

hedge-fund

A hedge fund is an investment vehicle less regulated than a mutual fund that pools capital from different investors and uses different investment strategies.

hedges

A hedge is an investment to reduce the risk of adverse price movements in an asset.

herd mentality

Herd mentality refers to a tendency for investors to move in the same direction when reacting to an event.

HFRI Equity Market Neuhftral Index

The HFRI Equity Market Neutral Index is an equally-weighted index that measures the performance of equity-market-neutral hedge-fund strategies.

HFRI Equity Market Neutral Index

The HFRI Equity Market Neutral Index is an equally-weighted index that measures the performance of equity-market-neutral hedge-fund strategies.

HFRX Equity Hedge Index

The HFRX Equity Hedge Index comprises long and short positions in primarily equity and equity-derivative securities, using quantitative as well as fundamental-analysis techniques.

high yield

High-yield bonds are issued by below-investment-grade-rated issuers and usually offer a relatively high yield.

High yield (HY)

High-yield bonds are issued by below-investment-grade-rated issuers and usually offer a relatively high yield.

high-yield

High-yield bonds are issued by below-investment-grade-rated issuers and usually offer a relatively high yield.

high-yield (HY)

High-yield bonds are issued by below-investment-grade-rated issuers and usually offer a relatively high yield.

high-yield debt

High-yield bonds are issued by below-investment-grade-rated issuers and usually offer a relatively high yield.

House

The United States House of Representatives is a legislative chamber consisting of 435 Representatives, as well as non-voting delegates from Washington, D.C. and U.S. territories. Representatives are elected for two-year terms and each state’s representation is based on population as measured in the previous Census.

House of Representatives

The United States House of Representatives is a legislative chamber consisting of 435 Representatives, as well as non-voting delegates from Washington, D.C. and U.S. territories. Representatives are elected for two-year terms and each state’s representation is based on population as measured in the previous Census.

H-shares

H-shares are shares of companies listed on the Chinese mainland, but traded on overseas markets, principally the Hong Kong Stock Exchange.

I

Iberia

Iberia is a peninsula in Southwestern Europe, on which the countries Spain, Portugal, Andorra, partially France and the British Overseas Territory Gibraltar are located.

iBoxx Euro Corporate Index

The iBoxx Euro Corporate Index includes euro-denominated corporate bonds issued by investment-grade-rated entities.

ICE BofAML Euro High Yield Constrained Index

The ICE BofAML Euro High Yield Constrained Index is an index of euro-denominated corporate bonds rated below investment grade.

ICE BofAML US High Yield Constrained Index

The ICE BofAML US High Yield Constrained Index is an index of dollar-denominated corporate bonds rated below investment grade.

ifo

The ifo Institute for Economic Research, based in Munich, is a leading European research institute, particulary known for its sentiment indicator "ifo Business Climate Index".

ifo Institute

The ifo Institute for Economic Research, based in Munich, is a leading European research institute, particulary known for its sentiment indicator "ifo Business Climate Index".

illiquid

Illiquid refers to the inability to easily convert assets or investments to cash.

illiquidity

Illiquid refers to the inability to easily convert assets or investments to cash.

IMF

The International Monetary Fund (IMF), created in 1945 and headquartered in Washington, D.C., is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Impact investing

Impact investing refers to investments made into companies, organisations and funds, often in private markets, with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.

Implied volatility

The CBOE Volatility Index (Vix) is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index. It is a popular measure of the volatility of the S&P 500 as implied in the short term option prices on the index.

Indian rupee

The Indian rupee is the official currency of the Republic of India.

inflation

Inflation is the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is falling.

inflationary

Inflation is the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is falling.

inflation-indexed bonds

Inflation-indexed securities are securities whose coupon payments are tied to a inflation rate.

information ratio

Information Ratio is excess return (Alpha) divided by Tracking Error. It is a measure of a portfolio manager’s ability to generate excess returns and the consistency of such.

Infrastructure assets

Infrastructure assets consist of physical structures and essential services that facilitate in the efficient working of an economy. Examples of infrastructure assets include airports, rail and toll roads on the one hand and water, power generation and electricity transmission and distribution on the other.

insurance-linked assets

Insurance-linked assets are securities the returns of which are based on re-insurance products.

Insurance-Linked-Anlagen

Insurance-linked assets are securities the returns of which are based on re-insurance products.

interest coverage

Interest coverage is calculated by dividing a company's earnings by its interest payments over a given period.

interest coverage ratio

Interest coverage is calculated by dividing a company's earnings by its interest payments over a given period.

interest-rate cycle

Interest-rate cycle describes the up- and downswings of interest rates mainly induced by the economic cycle.

International Monetary Fund

The International Monetary Fund (IMF), created in 1945 and headquartered in Washington, D.C., is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

International Monetary Fund (IMF

The International Monetary Fund (IMF), created in 1945 and headquartered in Washington, D.C., is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

International Monetary Fund (IMF)

The International Monetary Fund (IMF), created in 1945 and headquartered in Washington, D.C., is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

intrinsic value

The intrinsic value is the one that comes closest to the value that an objective fundamental analysis would ascribe to an asset.

investment grade

Investment grade (IG) refers to a credit rating from a rating agency that indicates that a bond has a relatively low risk of default.

Investment grade (IG)

Investment grade (IG) refers to a credit rating from a rating agency that indicates that a bond has a relatively low risk of default.

investment ratio

The investment ratio puts a country's capital expenditure (capex) in relation to its gross domestic product.

investment styles

Investment styles refer to different sets of investor approaches, such as a focus on value stocks (those with relatively low price-to-earnings ratios) or on growth stocks (those with high expected earnings growth).

investment-grade

Investment grade (IG) refers to a credit rating from a rating agency that indicates that a bond has a relatively low risk of default.

investment-grade (IG)

Investment grade (IG) refers to a credit rating from a rating agency that indicates that a bond has a relatively low risk of default.

ISIS

The Islamic State of Iraq and Syria is a Salafi jihadi militant group and self-proclaimed caliphate and Islamic state.

ISM Manufacturing Index

The ISM Purchasing Manager Index, published by the Institute for Supply Management, measures economic activity by assessing the sentiment among purchasing managers. It is an important indicator of the economic health.

Italian referendum

Italy’s constitutional referendum will be held not later than October 2016 on the question whether voters approve of amending the Italian Constitution to transform the Senate of the Republic into a “Senate of Regions”. The bill was proposed by prime minister Matteo Renzi and his party.

Italy's 2016 constitutional referendum

Italy’s constitutional referendum was held on December 4th, 2016. By a surprisingly large margin, voters turned down far-reaching changes intended to make Italy more governable. The bill was proposed by then prime minister Matteo Renzi, who promptly resigned.

J

J.P. Morgan CEMBI

The J. P. Morgan Corporate Emerging Markets Bond Index (CEMBI) is an index tracking dollar-denominated bonds issued by emerging-market corporates.

J.P. Morgan EMBI Global Diversified Composite

The J.P. Morgan EMBI Global Diversified Composite comprises dollar-denominated government bonds, issued by select emerging-market countries.

Japanese yen (JPY)

The Japanese yen (JPY) is the official currency of Japan.

JGBs

Japanese Government Bond (JGB) is issued by the government of Japan.

Jones Lang LaSalle (JLL)

Jones Lang LaSalle (JLL) is a firm providing commercial real estate services.

JP Morgan EMBI Global Composite Index

The J.P. Morgan EMBI Global Diversified Composite comprises dollar-denominated government bonds, issued by select emerging-market countries.

JPM EMBI Global Composite Index

The J.P. Morgan EMBI Global Diversified Composite comprises dollar-denominated government bonds, issued by select emerging-market countries.

JPX-Nikkei Index 400

The JPX-Nikkei Index 400 was established in January 2014 and is composed of 400 companies that a) are amongst the 1000 highest capitalised companies in Japan, b) have the best rankings for Return on Equity, operating profit and market value and c) have the best scores for corporate governance and disclosure.

JPY

The Japanese yen (JPY) is the official currency of Japan.

K

Korea Stock Price Index (KOSPI)

The Korea Stock Price Index (KOSPI) captures the performance of the 759 companies listed on the Korean stock market.

L

“Louvre” Accords

The Louvre Accord was an 1987 agreement between leading Western nations, which aimed to stabilize the international currency markets.

labor-force participation

The labor force participation rate is the proportion of a population that either are in work or are actively looking for work, within a defined age range.

Left

The Left, also referred to as the "Left Party", is a democratic-socialist and left-wing political party in Germany.

Lega

The Lega (formerly "Lega Nord") is a right-wing populist party in Italy. It was founded in 1991 through the merger of various parties. It is considered anti-globalist and Eurosceptic.

Lega Nord

The Lega (formerly "Lega Nord") is a right-wing populist party in Italy. It was founded in 1991 through the merger of various parties. It is considered anti-globalist and Eurosceptic.

leverage

Leverage attempts to boost gains when investing through the use of borrowing to purchase assets.

leveraged

Leverage attempts to boost gains when investing through the use of borrowing to purchase assets.

Liberals (FDP)

The Free Democratic Party (FDP), also referred to as the "Liberals",is a market-friendly and social-liberal political party in Germany that advocates human rights, civil and economic liberalism and that is considered centre-right in the German political landscape.

limited partnerships

Limited partnerships (LPs) are a form of partnership where one or more partners has only limited liability and no management authority. Private equity operations often exist in this form.

limited partnerships (LPs)

Limited partnerships (LPs) are a form of partnership where one or more partners has only limited liability and no management authority. Private equity operations often exist in this form.

Liquid alternatives

Liquid alternatives are investments that offer exposure to hedge-fund strategies via liquid investment vehicles that are accessible to a broad range of client types.

liquid-alternatives

Liquidity refers to the degree to which an asset or security can be bought or sold in the market without affecting the asset's price and to the ability to convert an asset to cash quickly.

liquidity

Liquidity refers to the degree to which an asset or security can be bought or sold in the market without affecting the asset's price and to the ability to convert an asset to cash quickly.

loan-loss provisions

Loan-loss provisions are an allowance for bad loans, for example due to customer defaults or a renegotiation of the terms of a loan.

long/short equity strategies

Equity long/short investing strategies seek to profit from gains in long positions and price declines in short positions, while trying to minimize market exposure.

M

M&A

Mergers and acquisitions (M&A) are the two key methods of corporate consolidation. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

macro

For Macro/CTA see ”Macro investing strategies“ and ”Commodity trading advisor (CTA)“.

margin

Margin describes borrowed money that is used to purchase securities.

margin calls

A margin call is a call for additional funds (in form of cash or securities) to be deposited if losses on the current value of assets exceed some predefined percentage.

maturities

The final payment date of a financial instrument is its maturity.

Maya Declaration

Maya Declaration is a commitment to unlock the economic and social potential of the 2.5 bn unbanked individuals worldwide through increased financial inclusion. Signatories to the Maya Declaration agree to make measurable commitments to increase financial inclusion through the creation of an enabling environment to harness new technology that increases access and lowers the cost of financial services; by implementing a framework that achieves the complimentary goals of financial inclusion and financial stability; by integrating consumer protection and financial literacy as key pillars of financial inclusion and lastly by collecting and utilising data to promote evidence-based policymaking and measurable progress in monitoring and evaluation.

MBS

A mortgage-backed security (MBS) is a special type of asset-backed security where the holder receives interest and redemption payments from pooled mortgage debtors, secured by the underlying mortgages.

MDax

The MDax is an equity index, which includes the 50 German Prime Standard companies ranked directly behind the 30 Dax companies, from sectors excluding technology.

mean reversion

Mean reversion is a theory that prices and returns eventually move back toward the mean, or average.

mean reverting

Mean reversion is a theory that prices and returns eventually move back toward the mean, or average.

mean-reversion

Mean reversion is a theory that prices and returns eventually move back toward the mean, or average.

Medicaid

Medicaid is an assistance program providing health coverage to people with low income. It is run by state and local governments within federal guidelines.

Medicare

Medicare is the U.S. national health insurance program for people aged 65 and above and younger people with disabilities or kidney failure.

merger arbitrage

Merger arbitrage is a type of hedge-fund strategy where the investor tries to gain from the difference in the price a buyer of a firm agrees to pay, and the stock price after the announcement of the acquisition.

merger spreads

The merger spread is the difference between the price a buyer of a firm agrees to pay and the stock price after the announcement of the acquisition.

merger-arbitrage

Merger arbitrage is a type of hedge-fund strategy where the investor tries to gain from the difference in the price a buyer of a firm agrees to pay, and the stock price after the announcement of the acquisition.

mergers and acquisitions (M&A)

Mergers and acquisitions (M&A) are the two key methods of corporate consolidation. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

mergers-and-acquisitions (M&A)

Mergers and acquisitions (M&A) are the two key methods of corporate consolidation. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

Microcredit

Microcredit is the provision of small loans to low income entrepreneurs.

Microfinance

Microfinance is the provision of financial services to low-income households and small informal businesses. The microfinance sector has grown from solely focusing on microcredit, that is small loans to low income entrepreneurs, to now include the provision of savings instruments, payment systems and specifically electronic cash and micro-insurance.

Microfinance institution

Microfinance institution (MFI) is a financial institution specialising in banking services for low-income groups and individuals. A MFI provides account services to small-balance accounts that would not normally be accepted by traditional banks. MFIs include banks, regulated nonbank financial institutions, savings and loan cooperatives and not-for-profit organisations.

Microfinance investment vehicles

Microfinance investment vehicles (MIVs) are independent investment entities that specialise in microfinance, with more than 50% of their noncash assets invested in microfinance. They are either self-managed or managed by an investment management form and are open to multiple investors. MIVs may issue shares, notes, or other financial instruments. MIVs can be classified according to their financial instruments, legal forms and distribution (public or private placements).

mid-cap

Firms referred to as mid cap generally have a market capitalization of between $2 billion and $10 billion.

misery index

The misery index, created by economist Arthur Okun, is an index that adds the U.S. inflation rate to the U.S. unemployment rate.

momentum

Momentum refers to the rate of growth of an index or security’s price. Momentum investors believe that strong growth is likely to be followed by further gains.

monetary policy

Monetary policy focuses on controlling the supply of money with the ulterior motive of price stability, reducing unemployment, boosting growth, etc. (depending on the central bank's mandate).

monetary tightening cycles

A monetary-policy tightening cycle is a period of time during which a central bank raises interest rates with the aim of slowing GDP growth or inflation.

monetary union

A monetary union consists of multiple countries sharing the same currency.

monetary-policy

Monetary policy focuses on controlling the supply of money with the ulterior motive of price stability, reducing unemployment, boosting growth, etc. (depending on the central bank's mandate).

Montreal Carbon Pledge

Montreal Carbon Pledge commits signatories to measure and publicly disclose the carbon footprint of their investment portfolios on an annual basis.

mortgage debt

A mortgage loan is used to finance the purchase of real estate.

mortgage-backed securities

A mortgage-backed security (MBS) is a special type of asset-backed security where the holder receives interest and redemption payments from pooled mortgage debtors, secured by the underlying mortgages.

mortgage-backed securities (MBS)

Commercial mortgage-backed securities are mortgage-backed security backed by commercial mortgages rather than residential real estate.

mortgage-backed-securities (MBS)

A mortgage-backed security (MBS) is a special type of asset-backed security where the holder receives interest and redemption payments from pooled mortgage debtors, secured by the underlying mortgages.

MSCI Emerging Markets Index

The MSCI Emerging Markets Index captures large- and mid-cap representation across 23 emerging-market countries.

MSCI Japan Index

The MSCI Japan Index is designed to measure the performance of the large- and mid-cap segments of the Japanese market.

MSCI AC Asia ex Japan Index

The MSCI AC Asia ex Japan Index captures large- and mid-cap representation across 2 of 3 developed-market countries (excluding Japan) and 8 emerging-market countries in Asia.

MSCI AC Asia ex Japan

The MSCI AC Asia ex Japan Index captures large- and mid-cap representation across 2 of 3 developed-market countries (excluding Japan) and 8 emerging-market countries in Asia.

MSCI AC Asia ex Japan Index

The MSCI AC Asia ex Japan Index captures large- and mid-cap representation across 2 of 3 developed-market countries (excluding Japan) and 8 emerging-market countries in Asia.

MSCI AC World

The MSCI AC World Index captures large- and mid-cap companies across 23 developed- and 24 emerging-market countries.

MSCI AC World Financials

The MSCI AC World Financials Index captures large- and mid-cap representation across 45 developed- and emerging-market countries.

MSCI AC World Financials Index

The MSCI AC World Financials Index captures large- and mid-cap representation across 45 developed- and emerging-market countries.

MSCI AC World Index

The MSCI AC World Index captures large- and mid-cap companies across 23 developed- and 24 emerging-market countries.

MSCI AC World Index*

The MSCI AC World Index captures large- and mid-cap companies across 23 developed- and 24 emerging-market countries.

MSCI ACWI Materials Index

The MSCI ACWI Materials Index captures large- and mid-cap companies classified in the materials sector across 23 developed- and 24 emerging-market countries.

MSCI ACWI Metals and Mining Index

The MSCI ACWI Metals and Mining Index is composed of large and mid-cap companies across 23 developed and 24 emerging countries that are classified in the metals-and-mining industry within the materials sector.

MSCI Asia ex Japan Index (USD)

The MSCI AC Asia ex Japan Index captures large- and mid-cap representation across 2 of 3 developed-market countries (excluding Japan) and 8 emerging-market countries in Asia.

MSCI EM Latin America Index

The MSCI Emerging Markets (EM) Latin America Index captures large- and mid-cap representation across five emerging-market countries in Latin America.

MSCI EM Latin America Index

The MSCI Emerging Markets (EM) Latin America Index captures large- and mid-cap representation across five emerging-market countries in Latin America.

MSCI Emerging Markets Index

The MSCI Emerging Markets Index captures large- and mid-cap representation across 23 emerging-market countries.

MSCI Europe

The MSCI Europe Index is designed to measure the performance of the large- and mid-cap segments of 15 developed markets in Europe.

MSCI Europe Banks Index

The MSCI Europe Banks Index captures large- and mid-cap representation across 13 developed-market countries in Europe. All securities in the index are classified in the banks industry group as per the Global Industry Classification Standard (GICS).

MSCI Europe Index

The MSCI Europe Index is designed to measure the performance of the large- and mid-cap segments of 15 developed markets in Europe.

MSCI Indonesia, Malaysia, Philippines and Thailand indices

The MSCI AC Asia ex Japan Index captures large- and mid-cap representation across 2 of 3 developed-market countries (excluding Japan) and 8 emerging-market countries in Asia.

MSCI IPD OFIX Germany Index

The MSCI IPD OFIX Germany measures the total return of selected open-ended German property funds after leverage, liquidity holdings and fund costs.

MSCI Japan

The MSCI Japan Index is designed to measure the performance of the large- and mid-cap segments of the Japanese market.

MSCI Japan Index

The MSCI Japan Index is designed to measure the performance of the large- and mid-cap segments of the Japanese market.

MSCI Latin America Index

The MSCI Emerging Markets (EM) Latin America Index captures large- and mid-cap representation across five emerging-market countries in Latin America.

MSCI United States Index

The MSCI USA Index is designed to measure the performance of the large- and mid-cap segments of the U.S. market.

MSCI World

The MSCI AC World Index captures large- and mid-cap companies across 23 developed- and 24 emerging-market countries.

MSCI World Index

The MSCI World Index tracks the performance of mid- and large-cap stocks in 23 developed countries around the world.

multi-asset funds

A multi-asset fund is able to combine different asset classes such as equities, bonds and cash) within its investment decisions. This provides a greater degree of diversification and flexibility.

Multilateral DFIs

Multilateral DFIs are the private sector arms of international financial institutions (IFIs) that have been established by more than one country, and hence are subject to international law. Their shareholders are generally national governments, but could also occasionally include other international or private institutions. These institutions finance projects in support of the private sector through mainly equity investments, longterm loans and guarantees. They usually have a greater financing capacity than bilateral development banks and also act as a forum for close co-operation among governments. The main multilateral DFIs include IFC, ADB, IDB, EIB and EBRD.

multiples

A multiple is a ratio that is used to measure aspects of a company’s well-being by setting various of the company’s metrics against each other and thereby building indicative ratios.

municipal bonds

Municipal bonds (Munis) are debt securities issued by a state, municipality or country.

mutual funds

A mutual fund combines funds from many investors with the intention of purchasing securities.

N

NAFTA

The North American Free Trade Agreement (NAFTA) is a trade agreement signed by Canada, Mexico and the United States, creating a trilateral trade bloc in North America, which came into force on January 1st, 1994.

NAREIT Index

NAREIT Index is a REIT-focused index that spans the commercial real-estate industry.

Nasdaq Composite Index

The Nasdaq Composite Index is an equity index which contains all common stocks listed on the NASDAQ exchange.

NCREIF ODCE Index

The "NCREIF Fund Index – Open End Diversified Core Equity" is a a capitalization-weighted return index of open end real estate funds.

Negative/exclusionary screening is

Negative/exclusionary screening is the exclusion from a fund or plan of certain sectors or companies involved in activities or industries deemed unacceptable or controversial.

negative-convexity

Negative convexity is a characteristic mainly of callable bonds. Most bonds' price reaction to yield changes follow a convex curve, implying that the bond price reacts less to a yield change at higher yields (and more at lower yields) than a linear curve would suggest. The opposite holds true for negative convexity: the bond price reacts less to yield changes at lower yields than a linear function would suggest.

net interest margins

The net interest margin of a financial institution is the difference between the average interest rate paid and the average interest rate received by the institution.

net operating income

Net operating income (NOI) refers to rent and other revenues minus operating costs.

Nikkei

The Nikkei 225 is a price-weighted index of Japan's 225 most important listed companies.

Nikkei 225

The Nikkei 225 is a price-weighted index of Japan's 225 most important listed companies.

nominal

In economics, a nominal value is not adjusted for inflation; a real value is.

Non-Accelerating Inflation Rate of Unemployment (NAIRU)

The Non-Accelerating Inflation Rate of Unemployment (NAIRU) describes rate of unemployment refers to a level of unemployment below which inflation accelerates.

non-performing loans

Non-performing loans (NPLs) are loans on which scheduled payments have not been made for (usually) at least 90 days.

Norms-based screening

Norms-based screening is the screening of investments against minimum standards of business practice based on international norms.

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) is a trade agreement signed by Canada, Mexico and the United States, creating a trilateral trade bloc in North America, which came into force on January 1st, 1994.

O

Obamacare

ObamaCare is the colloquial term for the Patient Protection and Affordable Care Act, the reform of the health-care industry introduced by U.S. president Barack Obama in 2010.

OECD

The Organization for Economic Co-operation and Development (OECD) started in 1948 as the Organization for European Economic Co-operation (OEEC) and changed its name in 1960, now representing 34 countries with democratic governments and market economies.

OLED

OLED refers to a display technology which is based on the use of an organic substance like polymer as the semiconductor material in light-emitting diodes.

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is an international organization with the mandate to ”coordinate and unify the petroleum policies“ of its meanwhile 12 members.

option

An option is a contract which gives the buyer the option – but not the obligation – to buy or sell an asset in the future at a specified price.

option-adjusted spreads

The option-adjusted spread ("OAS") is a commonly used measure for fixed-income securities with embedded options (call, put or sink). It makes the yield of such instruments comparable to similar securities without such embedded options. Typically, the OAS for credit sensitive instruments is quoted vis-à-vis the respective Swap spread curve. Technically, option pricing methods are used to evaluate the instruments with embedded options.

options

An option is a contract which gives the buyer the option – but not the obligation – to buy or sell an asset in the future at a specified price.

Organisation of the Petroleum Exporting Countries (OPEC)

The Organization of the Petroleum Exporting Countries (OPEC) is an international organization with the mandate to ”coordinate and unify the petroleum policies“ of its meanwhile 12 members.

Organization of Petroleum Exporting Countries (OPEC)

The Organization of the Petroleum Exporting Countries (OPEC) is an international organization with the mandate to ”coordinate and unify the petroleum policies“ of its meanwhile 12 members.

Organization of the Petroleum Exporting Countries (OPEC)

The Organization of the Petroleum Exporting Countries (OPEC) is an international organization with the mandate to ”coordinate and unify the petroleum policies“ of its meanwhile 12 members.

output gap

The output gap refers to the difference between a country’s actual GDP and its believed potential GDP, if all inputs were being used efficiently.

Outright Monetary Transactions (OMT)

Outright Monetary Transactions (OMT) is a program of the ECB under which the bank makes purchases (outright transactions) in secondary, sovereign bond markets, under certain conditions, of bonds issued by Eurozone member states.

overweight

Overweight means the investment holds a higher weighting in a given sector or security than the benchmark.

overweighting

Overweight means the investment holds a higher weighting in a given sector or security than the benchmark.

Owners’ equivalent rents

An owner’s equivalent rent is the amount of rent that would have to be paid if a homeowner instead had to rent an equivalent property.

P

“Plaza”

The Plaza Accord was a 1985 agreement between leading Western nations, which aimed to ensure an orderly decline in value of the U.S. dollar, and was followed by the Louvre Accord in 1987.

P/E

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

P/E ratios

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

Party of Democratic Socialism (PDS)

The Party of Democratic Socialism (PDS) was a democratic-socialist and left-wing political party in Germany that was the legal successor to the former state party of the German Democratic Republic in East Germany, the Socialist Unity Party of Germany (SED). It was one of the predecessors of the political party The Left.

payout ratio

The payout ratio is the proportion of earnings paid our as dividends to shareholders, typically expressed as a percentage.

payout ratios

The payout ratio is the proportion of earnings paid our as dividends to shareholders, typically expressed as a percentage.

PBoC

People’s bank of China (PBoC) is the central bank of China.

People’s Bank of China (PBoC)

People’s bank of China (PBoC) is the central bank of China.

performance index

A performance index (as opposed to a price index) assumes that dividends and other payouts are reinvested and therefore reflects the total return of an investment in the index.

peripheral

Periphery countries are less developed than the core countries of a specific region. In the Eurozone, the euro periphery consists of the economically weaker countries such as Greece, Portugal, Italy, Spain and Ireland.

periphery

Periphery countries are less developed than the core countries of a specific region. In the Eurozone, the euro periphery consists of the economically weaker countries such as Greece, Portugal, Italy, Spain and Ireland.

periphery bonds

Periphery bonds are government bonds issued by smaller countries of the Eurozone, e.g. Ireland, Portugal, Greece; sometimes also Spain and Italy are included. Historically, the term ‘Periphery’ was based on the stage of economical development and is currently used to refer to the above mentioned countries.

periphery countries

Periphery countries are less developed than the core countries of a specific region. In the Eurozone, the euro periphery consists of the economically weaker countries such as Greece, Portugal, Italy, Spain and Ireland.

periphery,

Periphery countries are less developed than the core countries of a specific region. In the Eurozone, the euro periphery consists of the economically weaker countries such as Greece, Portugal, Italy, Spain and Ireland.

Phillips curve

In economics, the Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation.

Planned Parenthood agency

The Planned Parenthood agency is a not-for-profit agency that provides reproductive health, maternal and child health services.

PMIs)

The Purchasing Managers Index (PMI) is an indicator of the economic health of the manufacturing sector in a specific country or region.

Positive/best-in-class screening

Positive/best-in-class screening is the investment in sectors, companies or projects selected for positive ESG performance relative to industry peers. This typically involves positive or negative screening or portfolio tilting.

pound

The pound sterling (GBP), or simply the pound, is the official currency of the United Kingdom and its territories.

PowerShares Dynamic Leisure and Entertainment Portfolio

The PowerShares Dynamic Leisure and Entertainment Portfolio is an ETF focused on the U.S. leisure, travel and entertainment sector.

premia

The risk premium is the expected return on an investment minus the return that would be earned on a risk-free investment.

price-earnings (P/E)

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-earnings ratio

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-earnings ratios

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-book

Price-to-book (P/B) ratio or multiple compares a stock’s market value with its book value.

price-to-book ratio

Price-to-book (P/B) ratio or multiple compares a stock’s market value with its book value.

price-to-earnings (P/E)

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings (P/E) multiples

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings (P/E) ratio

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings (P/E) ratios

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings (PE)

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings (PE) ratio

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings ratio (P/E ratio)

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

price-to-earnings ratio (PE)

The price-to-earnings (P/E) ratio compares a company's current share price to its earnings per share.

pricing power

Pricing power refers to the degree to which a firm can increase the price of its products, without a strong reduction in the quantity demanded.

primary

Primary elections in the United States are the part of the voting process where candidates are selected for the general election, usually with each party choosing a nominee for the office in question.

Principles for Responsible Investment Initiative

The United Nations-supported Principles for Responsible Investment Initiative was launched in 2006 and is an international network of investors working together to put the six Principles for Responsible Investment into practise. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision marketing and ownership practises. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.

Private equity

Private equity is a direct or indirect investment by a financial investor in a substantial part of a company's equity. Usually the company invested in is not listed.

Private-Equity

Private equity is a direct or indirect investment by a financial investor in a substantial part of a company's equity. Usually the company invested in is not listed.

private-equity acquisition multiples

For private-equity acquisition multiple see “multiple”.

Pro-cyclical sectors

Pro-cyclical sectors are those throught likely to particularly benefit from an upturn in the economic cycle (i.e. stronger growth).

production chain

The production chain refers to the various stages of production necessary to complete a manufacturing or other product.

productivity

Productivity measures how much economic output is produced for a given level of inputs (such as capital and labor).

Proxy voting

Proxy voting enables investors to execute their voting rights by entrusting a third party (e.g. proxy advisors) and enabling them to carry out votes as instructed and according to an applicable guidance (e.g. Proxy Voting Guidelines). Therefore, it is not necessary for the investor to be actively present and vote at shareholder meetings (AGM). (see: Broadridge, SEC)

public-to-private

Public-to-private refers to the process of buying out a company to remove it from a public stock market listing and returning it to private ownership.

Purchasing Managers Index (PMI)

The Purchasing Managers Index (PMI) is an indicator of the economic health of the manufacturing sector in a specific country or region.

purchasing managers’ indices

The Purchasing Managers Index (PMI) is an indicator of the economic health of the manufacturing sector in a specific country or region.

purchasing power

Purchasing power parity (PPP) is a technique used to determine the relative value of currencies, whereas the purchasing power in both currencies is the same.

purchasing-power parities

Purchasing power parity (PPP) is a technique used to determine the relative value of currencies, whereas the purchasing power in both currencies is the same.

put option

A put option is a financial security which gives the owner the right, but not the obligation, to sell an underlying asset at a specified price at a specified time (European option) or during a specified time period (American option).

put options

A put option is a financial security which gives the owner the right, but not the obligation, to sell an underlying asset at a specified price at a specified time (European option) or during a specified time period (American option).

Q

QE

Quantitative easing (QE) is an unconventional monetary-policy tool, in which a central bank conducts broad-based asset purchases.

Quantitative easing

Quantitative easing (QE) is an unconventional monetary-policy tool, in which a central bank conducts broad-based asset purchases.

quantitative easing (QE)

Quantitative easing (QE) is an unconventional monetary-policy tool, in which a central bank conducts broad-based asset purchases.

quantitative-easing

Quantitative easing (QE) is an unconventional monetary-policy tool, in which a central bank conducts broad-based asset purchases.

quantitative-easing (QE)

Quantitative easing (QE) is an unconventional monetary-policy tool, in which a central bank conducts broad-based asset purchases.

R

“risk-off”

Risk-on/ risk-off decribes an investment behaviour that is only based on a changed risk perception.

ratings

A rating is a standardized assessment of the creditworthiness of the issuer and its debt instruments by specialized agencies.

real

In economics, a real value is adjusted for inflation.

Real Estate Investment Trust (REIT)

Real Estate Investment Trusts (REITs) are companies, mostly listed, that own and often operate various types of real estate. They are obliged to pay out a minimum of 90% of earnings.

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are companies, mostly listed, that own and often operate various types of real estate. They are obliged to pay out a minimum of 90% of earnings.

real-estate-investment-trust (REITs)

Real Estate Investment Trusts (REITs) are companies, mostly listed, that own and often operate various types of real estate. They are obliged to pay out a minimum of 90% of earnings.

recapitalization

Recapitalization is a major change in a company's capital structure.

recession

A recession is, technically, when an economy contracts for two successive quarters but is often used in a looser way to indicate declining output.

recessions

A recession is, technically, when an economy contracts for two successive quarters but is often used in a looser way to indicate declining output.

reconciliation process

The reconciliation process is a measure used by the Senate to facilitate resolutions that adjust tax and spending levels to a present budget resolution.

recovery rates

The recovery rate is the extent to which principal and accrued interest on a debt instrument can be recovered in default, expressed as a percentage of the instrument’s face value.

reflation

The term reflation refers to rising prices after periods of severe economic weakness.

regressions

A regression is the statistical procedure to identify the comovement between different variables.

regulatory capital arbitrage

Regulatory capital arbitrage is a practice whereby firms capitalize on loopholes in regulatory systems in order to circumvent unfavorable regulation.

Regulierungsarbitrage

Regulatory capital arbitrage is a practice whereby firms capitalize on loopholes in regulatory systems in order to circumvent unfavorable regulation.

REIT

Real Estate Investment Trusts (REITs) are companies, mostly listed, that own and often operate various types of real estate. They are obliged to pay out a minimum of 90% of earnings.

relative-value

Relative-value investing strategies seeks to take advantage of price differentials between financial instruments by simultaneously buying and selling the different securities, thereby allowing investors to potentially profit from the "relative value".

relative-value strategies

Relative-value investing strategies seeks to take advantage of price differentials between financial instruments by simultaneously buying and selling the different securities, thereby allowing investors to potentially profit from the "relative value".

Renewable energy

Renewable energy is defined as energy that comes from a source that is not depleted when used, such as wind or solar power.

renminbi

Renminbi (RMB) is the currency of the People's Republic of China.

Republican

The Republican Party (Republicans), also referred to as Grand Old Party (GOP), is one of the two major political parties in the United States. It is generally to the right of its main rival, the Democratic Party.

Republican Party

The Republican Party (Republicans), also referred to as Grand Old Party (GOP), is one of the two major political parties in the United States. It is generally to the right of its main rival, the Democratic Party.

Republican Party (GOP)

The Republican Party (Republicans), also referred to as Grand Old Party (GOP), is one of the two major political parties in the United States. It is generally to the right of its main rival, the Democratic Party.

Republicans

The Republican Party (Republicans), also referred to as Grand Old Party (GOP), is one of the two major political parties in the United States. It is generally to the right of its main rival, the Democratic Party.

re-rated

Re-rating, for equities, refers to a change in market view that results in a significant change in the valuation of an individual country, sector or geography.

Reserve Bank of India

The Reserve Bank of India (RBI) is the central bank of India.

Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) is the central bank of India.

reserve currency

A reserve currency is a foreign currency held in significant quantities by central banks and international financial institutions. Foreign currency reserves allow a country to pay off its international debt obligations or boost its currency’s value.

Responsible investment

Responsible investment is an investment strategy which seeks to generate both financial and sustainable value. It consists of a set of investment approaches that integrate environmental, social, governance (ESG) and ethical issues into financial analysis and investment decision-making.

Return on equity

The Return on equity (ROE) is the amount of net income returned as a percentage of shareholders‘ equity.

return on equity (ROE)

The Return on equity (ROE) is the amount of net income returned as a percentage of shareholders‘ equity.

rig count

Rig count details the number oil and gas drilling rigs, as well as their operational status and regional location.

risk premia

The risk premium is the expected return on an investment minus the return that would be earned on a risk-free investment.

risk premium

The risk premium is the expected return on an investment minus the return that would be earned on a risk-free investment.

risk premiums

The risk premium is the expected return on an investment minus the return that would be earned on a risk-free investment.

risk-free asset

The risk-free interest rate is a theoretical concept in financial economics, describing an investment yielding exactly the return expected at the time of purchase. This is mainly used as a benchmark for other, riskier investments. In practice, it is usually estimated by taking the yield on a long-term top-rated government bond.

risk-free rate

The risk-free interest rate is a theoretical concept in financial economics, describing an investment yielding exactly the return expected at the time of purchase. This is mainly used as a benchmark for other, riskier investments. In practice, it is usually estimated by taking the yield on a long-term top-rated government bond.

risk-off

Risk-on/ risk-off decribes an investment behaviour that is only based on a changed risk perception.

ROE

The Return on equity (ROE) is the amount of net income returned as a percentage of shareholders‘ equity.

roll-down effects

The roll-down effect can form a significant component of returns in fixed income. It arises when longer-term bonds offer higher yields than shorter dated ones of the same issuer. With such a yield-curve, the yield of the bond will decrease as maturity approaches, and as a result, its value will increase, as it "rolls down" the yield curve.

R-squared

R-squared, in the context of portfolio management, is a statistic that indicates how closely a fund's performance correlates to the performance of a benchmark.

Russell 1000 Index

The Russell 1000 Index is an index that captures the 1,000 largest companies of the Russell 3000 Index, which again comprises 3,000 small- and mid-cap listed U.S. stocks.

Russell 2000

The Russell 2000 is an index that captures the 2,000 smallest stocks of the Russell-3000 index, which again comprises 3,000 small- and mid-cap U.S. listed stocks.

Russell 2000 Index

The Russell 2000 is an index that captures the 2,000 smallest stocks of the Russell-3000 index, which again comprises 3,000 small- and mid-cap U.S. listed stocks.

Russell 3000

The Russell 3000 is a market-capitalization-weighted index tracking the performance of the U.S. equity market's 3000 largest companies.

S

S&P 500

The S&P 500 is an index that includes 500 leading U.S. companies capturing approximately 80% coverage of available U.S. market capitalization.

S&P 500 Index

The S&P 500 is an index that includes 500 leading U.S. companies capturing approximately 80% coverage of available U.S. market capitalization.

S&P 500 Biotechnology Index

The S&P Biotechnology Select Industry Index captures the companies listed in the S&P 500 Index from the biotechnology sector.

S&P 500 Consumer Discretionary Index

The S&P 500 Consumer Discretionary Index tracks the performance of companies included in the S&P 500 Index that are classified as members of the GICS consumer discretionary sector.

S&P 500 Consumer Staples Index

The S&P 500 Consumer Staples Index tracks the performance of S&P 500 Index consumer staples companies.

S&P 500 Dividend Aristocrats Price Index

The S&P 500 Dividend Aristocrats Price Index tracks S&P 500 index constituents that have increased their dividend payouts for 25 consecutive years or more.

S&P 500 Healthcare

The S&P 500 Health Care Index captures the companies listed in the S&P 500 Index from the health care sector.

S&P 500 Index

The S&P 500 is an index that includes 500 leading U.S. companies capturing approximately 80% coverage of available U.S. market capitalization.

S&P 500 Index*

The S&P 500 is an index that includes 500 leading U.S. companies capturing approximately 80% coverage of available U.S. market capitalization.

S&P 500 Information Technology Index

The S&P 500 Information Technology Index contains the stocks of all technology-sector companies in the S&P 500.

S&P Global LargeCap

The S&P Global LargeCap is a rule-based equity performance index that comprises stocks representing 70% of market capitalization in each developed and emerging country.

S&P GSCI Index

The S&P GSCI tracks the price development of 24 different commodities as underlyings of futures positions.

safe-haven investments

A safe-haven investment is an investment that is expected to retain or even increase its value in times of market turbulence.

sales taxes

A (conventional) sales tax is a tax only levied on goods and services to the final consumer.

savings ratios

Savings ratio is the ratio of personal savings to disposable income.

secondaries

Secondaries are securities or assets, which are directly purchased from other investors, rather than from the issuers themselves.

secondary buyouts

A secondary buyout is when a private-equity company buys a stake in a company directly from another private-equity company.

secondary market

On the secondary market, securities or assets are purchased from other investors, rather than from issuing companies themselves.

Senate

The United States Senate is a legislative chamber consisting of 100 Senators, with each state being represented by two Senators. Senators are elected for six year, overlapping terms in their respective state.

Senators

The United States Senate is a legislative chamber consisting of 100 Senators, with each state being represented by two Senators. Senators are elected for six year, overlapping terms in their respective state.

Shanghai A Share Index

Shanghai Stock Exchange A Share Index represent the biggest and most liquid part of mainland China shares, and are generally only accessible to mainland investors.

Shanghai A-Share Index

The Shanghai Stock Exchange A-Share Index is a market-capitalization-weighted equity index comprising all A-shares listed on the Shanghai Stock Exchange.

Share buyback

A share buyback involves a company buying back its own shares.

share buybacks

A share buyback involves a company buying back its own shares.

Shareholder engagement

is the practice of monitoring corporate behavior and seeking changes where appropriate through dialogue with companies or through the use of share ownership rights, such as filing shareholder resolutions. Shareholder engagement activities include engaging with companies on matters such as strategy, performance, risk, capital structure, and corporate governance, including culture and remuneration. Furthermore, it is often employed in attempts to improve company’s ESG performance and transparency.

sharpe ratio

The sharpe ratio puts an asset's excess return (the return above the risk-free rate) in relation to the asset's risk as measured by its standard deviation.

short

Short, in a financial-markets context, refers to approaches that seek to gain from a fall in the price of the underlying asset.

short positions

Short, in a financial-markets context, refers to approaches that seek to gain from a fall in the price of the underlying asset.

shorting

Short, in a financial-markets context, refers to approaches that seek to gain from a fall in the price of the underlying asset.

Single Resolution Mechanism (SRM)

The Single Resolution Mechanism (SRM) implements in participating European Union (EU) member states the EU’s Bank Recovery and Resolution Directive, which is the framework for the recovery and resolution of credit institutions and investment firms found to be in danger of failing.

Single Supervisory Mechanism (SSM)

The Single Supervisory Mechanism (SSM) is the mechanism that granted the European Central Bank (ECB) a supervisory role to monitor the financial stability of banks based in participating EU member states.

small

Small cap firms generally have a market capitalization of less than $2 billion.

Small, medium-size enterprises

Small, medium-size enterprises (SMEs) are defined by three keywords – small, single and local. SMEs are small in terms of number of employees ranging from 10 persons (small) to up to 200 (medium) depending on the country’s laws. SMEs also have limited working capital and assets and turnover. Most SMEs have a single owner and typically the SME produces just a single product or service provided. The market for the SME is usually localised to the area where they are located.

small-cap

Small cap firms generally have a market capitalization of less than $2 billion.

SMI

The Swiss Market Index (SMI) is Switzerland's most important equity index, consisting of the 20 largest and most liquid large- and mid-cap stocks.

SNAP

The Supplemental Nutrition Assistance Program (SNAP) provides benefits to low-income individuals and families and provides economic benefits to communities. The Food and Nutrition Service (FNS) works with state agencies, nutrition educators, and neighborhood and faith-based organizations to ensure that those eligible for nutrition assistance can make informed decisions about applying for the program and can access benefits.

Social Democratic (SPD)

The Social Democratic Party of Germany (SPD), also referred to as the "Social Democrats", is a social-democratic political party in Germany that is considered center-left in the German political landscape.

Social Democratic Party (SPD)

The Social Democratic Party of Germany (SPD), also referred to as the "Social Democrats", is a social-democratic political party in Germany that is considered center-left in the German political landscape.

Social Democrats

The Social Democratic Party of Germany (SPD), also referred to as the "Social Democrats", is a social-democratic political party in Germany that is considered center-left in the German political landscape.

soft landing

A soft landing is when an economy's rate of growth slows in a controlled fashion without major disruptive effects on employment, external balances etc.

sovereign bond

Sovereign bonds are bonds issued by governments.

sovereign bonds

Sovereign bonds are bonds issued by governments.

Sovereign-bond

Sovereign bonds are bonds issued by governments.

speaker

The Speaker presides over the House of Representatives and is second in line to the Presidency after the Vice President.

Special Drawing Rights (SDR)

Special drawing rights (SDR) are international reserve assets created by the IMF, which can be exchanged for the freely usable currencies of IMF members.

special-situation

Special situation managers, in a hedge-fund context, are those that try to benefit from individual events affecting individual companies, for example mergers or demergers.

spread

The spread is the difference between the quoted rates of return on two different investments, usually of different credit quality.

Spreads

The spread is the difference between the quoted rates of return on two different investments, usually of different credit quality.

Standard & Poor’s

Standard and Poor’s (S&P) is a financial services company that provides debt rating as well as other financial research and market indices.

Standard & Poor's

Standard and Poor’s (S&P) is a financial services company that provides debt rating as well as other financial research and market indices.

Standard and Poor’s (S&P)

Standard and Poor’s (S&P) is a financial services company that provides debt rating as well as other financial research and market indices.

standard deviation

Standard deviation is often used to represent the volatility of an investment. It depicts how widely an investment’s returns vary from the investment’s average return over a certain period.

state

A United States state is one of 50 constituent political entities of the United States that have statehood, resulting, for example, in being represented in the Senate.

Stewardship

can be defined in general terms as the responsible management of something entrusted to one’s care. This suggests a fiduciary duty of care on the part of those agents entrusted with management responsibility to act on behalf of the end beneficiaries. In an investment context institutional investors are the agents acting on behalf of beneficiaries, who are often long-term savers or members of pension funds. At an individual company level stewardship helps to promote high standards of corporate governance which contributes to sustainable value creation, thereby increasing the long-term risk adjusted rate of return to investors and their beneficiaries or clients. At an investor level, stewardship is about preserving and enhancing long-term value as part of a responsible investment approach. This includes the consideration of wider ethical, environmental and social factors as core components of fiduciary duty. In a broader context, stewardship enhances overall financial market stability and economic growth.

Stoxx Europe 600 Index

The Stoxx Europe 600 is an index representing the performance of 600 listed companies across 18 European countries.

Stoxx 600

The Stoxx Europe 600 is an index representing the performance of 600 listed companies across 18 European countries.

Stoxx 600 Index

The Stoxx Europe 600 is an index representing the performance of 600 listed companies across 18 European countries.

Stoxx Europe 600

The Stoxx Europe 600 is an index representing the performance of 600 listed companies across 18 European countries.

STOXX Europe 600 Index

The Stoxx Europe 600 is an index representing the performance of 600 listed companies across 18 European countries.

Structured Credit

Bundles of debt divided into securities offering different levels of risk.

style factors

Style factors refer to investors' varying approaches to investment (for example a preference for active over passive approaches).

subsistence level

The subsistence level is a level of income that can cover only the basic necessities of life.

Supreme Court

The Supreme Court is the highest federal court of the United States and the final interpreter of federal constitutional law. It has appellate jurisdiction over all federal courts.

Sustainability

Sustainability or sustainable development refers to the concept of meeting present needs without compromising the ability of future generations to meet their needs. It encompasses social welfare, protection of the environment, efficient use of natural resources and economic well-being.

Sustainable Development Goals

Sustainable Development Goals (SDGs) are official known as Transforming our world: the 2030 Agenda for Sustainable Development, and are an intergovernmental set of 17 aspirational goals with 169 targets covering a broad range of sustainable development issues. Goals cover ending poverty and hunger, improving health and education, making cities more sustainable, combating climate change, and protecting oceans and forests. The Goals are contained in paragraph 51 United Nations Resolution A/RES/70/1 of 25 September 2015.

Sustainable investment

Sustainable investment is a form of investing which companies investors’ financial objectives with their concerns about environmental, social, ethical and corporate governance issues. In some instances this is also referred to as socially responsible or ethical investing.

swap

A swap, a type of derivative, is an agreement between two parties to exchange sequences of cash flows for a set period of time.

swing states

Swing states in presidential politics are states in which a close result is expected, as neither of the two major parties appears to have a clear advantage, based on historical trends or poll results.

Swiss Market Index

The Swiss Market Index (SMI) is Switzerland's most important equity index, consisting of the 20 largest and most liquid large- and mid-cap stocks.

Swiss Market Index

The Swiss Market Index (SMI) is Switzerland's most important equity index, consisting of the 20 largest and most liquid large- and mid-cap stocks.

Swiss National Bank (SNB)

The Swiss National Bank (SNB) is the Swiss central bank.

systematic

Systematic, in a trading context, are strategies using quantitative models to generate buy and sell signals.

systematic indicators

A systematic indicator is a value calculated based on macroeconomic, financial-market and other global data.

systematic managers

Systematic managers, in the context of Commodity Trade Advisors (CTAs) seek to identify and benefit from trends across a diversified portfolio of assets.

Systematic/CTA

A commodity trading advisor (CTA) is an individual or organization providing advice and services related to trading in futures contracts, commodity options and/or swaps.

T

taper tantrum

The terms taper conundrum or taper tantrum were used to describe the investor panic when the Federal Reserve announced that it would reduce their purchases in the context of its quantitative-easing program.

Tapering

Tapering is a slow, continuous reduction of the central bank’s asset purchases; especially referring to the U.S. Federal Reserve.

TARGET2

TARGET2 is the payment system for the execution of cross-border payments between Eurozone countries.

targeted longer-term refinancing operations (TLTROs)

Targeted longer-term refinancing operations (TLTROs) refer to the ECB’s providing of financing to Eurozone banks.

Taylor rule

The Taylor Rule, developed by the economist John Taylor, determines how a central bank should set short-term interest rates, in response to observed divergences of actual from target inflation and actual from potential output.

Tea Party

The Tea Party is an U.S. conservative movement with support within the Republican party.

TecDax

The TecDax is an equity index tracking the 30 largest German technology companies, ranked below those included in the Dax.

technical bear markets

A technical bear market refers to a situation where the index’s value falls at least 20% from a recent high.

the Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) is the international organization of central banks.

the Bank of Japan (BOJ)

The Bank of Japan (BOJ) is the central bank of Japan.

the Fed

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

the Left

The Left, also referred to as the "Left Party", is a democratic-socialist and left-wing political party in Germany.

the Liberals (FDP)

The Free Democratic Party (FDP), also referred to as the "Liberals",is a market-friendly and social-liberal political party in Germany that advocates human rights, civil and economic liberalism and that is considered centre-right in the German political landscape.

Tier-1

Cities that are considered to be best/ second-best within a country from a commercial and investment point of view.

Tier-2

Cities that are considered to be best/ second-best within a country from a commercial and investment point of view.

tightening cycle

A monetary-policy tightening cycle is a period of time during which a central bank raises interest rates with the aim of slowing GDP growth or inflation.

TLTRO

Targeted longer-term refinancing operations (TLTROs) refer to the ECB’s providing of financing to Eurozone banks.

TLTROs

Targeted longer-term refinancing operations (TLTROs) refer to the ECB’s providing of financing to Eurozone banks.

Tokyo Stock Exchange REIT Index

The Tokyo Stock Exchange REIT Index tracks the performance of all real estate investment trusts listed on the Tokyo Stock Exchange (J-REITs).

TOPIX

The Topix (Tokyo Stock Price Index) captures all companies (almost 2000) of the First Section of the Tokyo Stock Exchange.

tracking error

Tracking error is an unwanted deviation between, for example, an index fund and a portfolio.

Trade Weighted U.S. Dollar Index

The Trade-Weighted U.S. Dollar Index tracks the performance of the U.S. dollar relative to other world currencies.

trade-weighted currency basket

The Trade-Weighted U.S. Dollar Index tracks the performance of the U.S. dollar relative to other world currencies.

Trade-Weighted Euro Index

The Trade-Weighted Euro Index tracks the performance of the euro relative to other world currencies.

Trade-Weighted U.S. Dollar Index

The Trade-Weighted U.S. Dollar Index tracks the performance of the U.S. dollar relative to other world currencies.

traditional assets

Traditional assets are well-known assets such as equities or bonds.

Trans-Pacific Partnership (TPP)

The Trans-Pacific Partnership is a proposed trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

Treasuries

Treasuries are fixed-interest U.S. government debt securities with different maturities: Treasury bills (1 year maximum), Treasury notes (2 to 10 years), Treasury bonds (20 to 30 years) and Treasury Inflation Protected Securities (TIPS) (5, 10 and 30 years).

Treasury

Treasuries are fixed-interest U.S. government debt securities with different maturities: Treasury bills (1 year maximum), Treasury notes (2 to 10 years), Treasury bonds (20 to 30 years) and Treasury Inflation Protected Securities (TIPS) (5, 10 and 30 years).

Troika

The Troika consists of the International Monetary Fund (IMF), the European Central Bank (ECB) and the EU Commission.

Trump rally

The terms "Trump trade" or "Trump rally" describe the strong movements in various asset prices in the weeks and months following the U.S. elections of November 2016.

Trump trade

The terms "Trump trade" or "Trump rally" describe the strong movements in various asset prices in the weeks and months following the U.S. elections of November 2016.

U

U.S House of Representatives

The U.S House of Representatives is one of the two houses of the United States Congress.

U.S. central bank (Fed)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

U.S. Commerce Department

The U.S. Commerce Department is the Cabinet department of the U.S. government concerned with promoting economic growth.

U.S. Congress

The United States Congress is the legislature of the federal government. It is comprised of the Senate and the House of Representatives, consisting of 435 Representatives and 100 Senators.

U.S. dollar (USD)

The U.S. dollar (USD) is the official currency of the United States and its overseas territories.

U.S. dollar. Investment-grade

Investment grade (IG) refers to a credit rating from a rating agency that indicates that a bond has a relatively low risk of default.

U.S. Federal Reserve

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

U.S. Federal Reserve (Fed)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

U.S. Federal Reserve (the Fed)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

U.S. Federal Reserve Board

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

U.S. Federal Reserve Board (Fed)

The Federal Reserve System or Fed, which serves as the U.S. central bank, was established in 1913, consisting of the Federal Reserve Board with seven members headquartered in Washington, D.C., and twelve Reserve Banks located in major cities throughout the United States.

U.S. Treasuries

Treasuries are fixed-interest U.S. government debt securities with different maturities: Treasury bills (1 year maximum), Treasury notes (2 to 10 years), Treasury bonds (20 to 30 years) and Treasury Inflation Protected Securities (TIPS) (5, 10 and 30 years).

U6 unemployment rate

The U6 unemployment rate is the broadest measure of unemployment including those who have given up looking for work and those who are working part-time but would prefer to work full-time.

uncorrelated

Correlation is a measure of how closely two variables move together over time.

underperformance

Underperformance refers to an investment performing comparatively less well than others.

underweight

Underweight means the investment holds a lower weighting in a portfolio than in the benchmark.

underweighting

Underweight means the investment holds a lower weighting in a portfolio than in the benchmark.

union

A fiscal union is the integration of the fiscal policy of several nations. Decisions about the collection and expenditure of taxes are taken by common institutions.

unit labor costs

Unit labor costs (ULC) measure the average cost of labor per unit of output.

unit labor costs (ULCs)

Unit labor costs (ULC) measure the average cost of labor per unit of output.

United States Congress

The United States Congress is the legislature of the federal government. It is comprised of the Senate and the House of Representatives, consisting of 435 Representatives and 100 Senators.

unknown unknowns

"But there are also unknown unknowns – the ones we don't know we don't know", is a phrase used by former U.S. Secretary of Defense Donald Rumsfeld in February 2002 on risks we face without even knowing of their existence.

unlisted

A business which is not listed (traded) on a stock exchange but can have multiple shareholders.

US Federal Reserve

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

US Federal Reserve Board (the Fed)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

US Federal Reserve Board (the Fed)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

US Federal Reserve Board's (the Fed's)

The U.S. Federal Reserve Board, often referred to as "theFed", is the central bank of the United States.

USD

The U.S. dollar (USD) is the official currency of the United States and its overseas territories.

V

valuation

Valuation attempts to quantify the attractiveness of an asset, for example through looking at a firm’s stock price in relation to its earnings.

valuations

Valuation attempts to quantify the attractiveness of an asset, for example through looking at a firm’s stock price in relation to its earnings.

value-added tax (VAT)

A value-added tax (VAT) is a consumption tax that is collected based on the incremental value added in each stage of production (as opposed to a sales tax where only the final consumer is taxed).

VelocityShares Daily Inverse VIX Short-Term ETN

The VelocityShares Daily Inverse VIX Short-Term ETN is an exchange traded note that provides short exposure to the S&P 500 VIX Short-Term Futures Index and therefore profits from falling volatility in U.S. equity markets.

Vix

The CBOE Volatility Index (Vix) is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index. It is a popular measure of the volatility of the S&P 500 as implied in the short term option prices on the index.

volatile

Volatility is the degree of variation of a trading-price series over time. It can be used as a measure of an asset's risk.

Volatilities

Volatility is the degree of variation of a trading-price series over time. It can be used as a measure of an asset's risk.

Volatility

Volatility is the degree of variation of a trading-price series over time. It can be used as a measure of an asset's risk.

volatility/variance

Volatility is the degree of variation of a trading-price series over time. It can be used as a measure of an asset's risk.

VVIX

The VVIX measures the expected volatility of the 30-day forward price of the VIX and can be seen as a measure of the volatility of volatility.

W

wealth effects

The wealth effect is the change in spending that accompanies a change in perceived wealth (also known as the wealth channel).

West Texas Intermediate

West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing.

West Texas Intermediate (WTI

West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing.

West Texas Intermediate (WTI)

West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing.

White House

The White House is the official residence and principal workplace of the President of the United States.

WikiLeaks

WikiLeaks is a non-profit organization, that publishes secret information on its website. It was launched in 2006 by Julian Assange, an Australian Internet activist.

winner-takes-all

electoral system, the candidate or party with the largest number of votes wins everything at stake. In the context of the U.S. presidential election, for example, most states award all electoral votes to the candidate able to secure the most votes.

World Trade Organisation (WTO)

The World Trade Organization (WTO) is an international organization based in Switzerland, which regulates commerce between nations through mutually agreed rules.

World Trade Organization (WTO)

The World Trade Organization (WTO) is an international organization based in Switzerland, which regulates commerce between nations through mutually agreed rules.

WTI

West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing.

Y

yen

The Japanese yen (JPY) is the official currency of Japan.

yield

Yield is the income return on an investment referring to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

yield curve

A yield curve shows the annualized yields of fixed-income securities across different contract periods as a curve. When it is inverted, bonds with longer maturities have lower yields than those with shorter maturities.

yield curves

A yield curve shows the annualized yields of fixed-income securities across different contract periods as a curve. When it is inverted, bonds with longer maturities have lower yields than those with shorter maturities.

yields

Yield is the income return on an investment referring to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

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