Abbreviations

Question 1

BFT

Answer 1

Budgeting and Forecasting Tool

Question 2

EWS

Answer 2

Early Warning System

Question 3

OW

Answer 3

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.)

Question 4

UW

Answer 4

Underwritten

Question 5

ISM

Answer 5

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).

Question 6

ISM Prices Paid

Answer 6

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.

Question 7

PCE

Answer 7

Personal Consumption Expenditures (a measure of consumer spending on goods and services among households in the U.S. )

Question 8

EPS

Answer 8

Earnings Per Share

Question 9

EMBI

Answer 9

The Emerging Markets Bond Index

Question 10

LEMBO

Answer 10

Local Emerging Bonds

Question 11

NEMBO

Answer 11

Normal Emerging Bonds

Question 12

IAB

Answer 12

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.

Question 13

GEM

Answer 13

Global Economy Model

Question 14

CSFF

Answer 14

Commission de Surveillance du Secteur Financier

Question 15

GLEX

Answer 15

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

Question 16

cocos

Answer 16

convertible bonds

Question 17

CS01

Answer 17

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

Question 17

DV01

Answer 17

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

Question 18

RI

Answer 18

Responsible Investing

Question 19

EM

Answer 19

Emerging markets

Question 20

SDGs

Answer 20

Sustainable Development Goals

Question 21

MiFID

Answer 21

Markets in Financial Instruments Directive

Question 22

SFDR

Answer 22

Sustainable Finance Disclosure Regulation

Question 23

CRO

Answer 23

Chief Risk Officer

Question 24

CDS

Answer 24

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.

Question 25

TPF

Answer 25

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

Question 26

CPSF

Answer 26

Capital Protected and Structured Funds, the funds that get their return from an investment in a swap position (usually an equity swap)

Question 27

CCAR

Answer 27

Comprehensive Capital Analysis and Review, a stress test for all U.S. banks with consolidated assets of over USD 50 billion, conducted by Fed.

Question 28

DFAST

Answer 28

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

Answer 29

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.