Abbreviations Flashcards
BFT
Budgeting and Forecasting Tool
EWS
Early Warning System
OW
Offer Wanted
(An indication or announcement that an investor or broker-dealer wishes to buy a certain security at a certain price, especially when there are no current sellers. An OW is analogous to an offer, which is essentially the same thing from the seller’s perspective. The price on an OW is called the bid.)
UW
Underwritten
ISM
The Institute of Supply Management (ISM) Non-Manufacturing Index is an economic index based on surveys of more than 400 non-manufacturing (or services) firms’ purchasing and supply executives. The ISM services survey is part of the ISM Report On Business—Manufacturing (PMI) and Services (PMI).
ISM Prices Paid
The Prices Paid subcategory is a diffusion index calculated by adding the percent of responses indicating they paid more for inputs plus one-half of those responding that they paid the same for inputs. The resulting single index number is then seasonally adjusted.
The Prices Paid diffusion index is one of a number of indicators pointing to the degree of inflationary pressures in the economy.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
PCE
Personal Consumption Expenditures (a measure of consumer spending on goods and services among households in the U.S. )
EPS
Earnings Per Share
EMBI
The Emerging Markets Bond Index
LEMBO
Local Emerging Bonds
NEMBO
Normal Emerging Bonds
IAB
Indexed Annuity Bonds.
In exchange for buying an indexed annuity bond (IAB) with an up-front, lump-sum payment, you then receive a cashflow comprising both principal and interest until the maturity date of the bond.
GEM
Global Economy Model
CSFF
Commission de Surveillance du Secteur Financier
GLEX
Global Exposure, a methodology to monitor the derivatives risk exposure in UCITS funds
(it’s also used in AIF funds but slightly differently). There are two approaches to calculate global exposure:
commitment approach and value-at-risk
cocos
convertible bonds
CS01
Measures change in bond price with respect to change in credit spreads. Normally the language used is for 1 bp or also 1%,
hence the ‘01’ in the name
DV01
Dollar duration.
It’s a linear approximation (partial derivative) how a bond’s price changes with respect to changes in interest rates. Normally it’s read like: 5 bps increase in interest rates would lead to X change in bond price
RI
Responsible Investing
EM
Emerging markets
SDGs
Sustainable Development Goals
MiFID
Markets in Financial Instruments Directive
SFDR
Sustainable Finance Disclosure Regulation
CRO
Chief Risk Officer
CDS
A credit default swap is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event.
TPF
A trade profit fund is an investment fund that invests in a variety of financial instruments, including stocks, bonds, commodities, and foreign currencies, with the goal of generating profits from trading
CPSF
Capital Protected and Structured Funds, the funds that get their return from an investment in a swap position (usually an equity swap)
CCAR
Comprehensive Capital Analysis and Review, a stress test for all U.S. banks with consolidated assets of over USD 50 billion, conducted by Fed.
DFAST
Dodd-Frank Act Stress Test, a stress test for all U.S. banks with consolidated assets between USD 10 billion and USD 50 billion. Same scenarios as in CCAR, but banks do not need to submit a capital plan, because capital mngmt is based on a standard set of assumptions
the LCR to ensure that banks have enough liquid assets and the NSFR to ensure that banks have reliable funding sources in a stressed environment. The LCR addresses the asset side of the balance sheet, and the NSFR addresses the liability/equity side.
