bond
Borrowing on the capital market. Bonds can have fixed or variable interest rates. The fractions of a bond that are designed as securities and are therefore tradable are called obligations or bonds.
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Festhypothek
Has an interest rate that does not change over the term, usually between two and ten years, unlike the variable mortgage , which depends on the fluctuations in the mortgage interest rate.
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duration
1. Lifetime of a derivative or an obligation. 2. Period in option transactions during which an American option can be exercised.
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central bank
Economic institution that is responsible for supplying the economy with money. At the same time, it should create monetary stability and, depending on the statute, full employment and appropriate economic growth. In Switzerland, this is the SNB.
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Realzins
Nominal interest rate minus expected inflation. The real interest rate thus expresses the interest income adjusted for the loss of purchasing power or the adjusted interest debt.
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risk
In financial market theory, the risk of an investment is measured by the fluctuations in earnings. Theoretically, risk and return are directly related: the higher the risk taken, the greater the return on the corresponding investment should be in the long term (cf. risk management).
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risk premium
1. Difference between long-term and short-term interest rates. The yield spread is the simplified form of the yield curve. 2. Risk premium, which the obligations of a specific obligor category or an individual obligor have compared to a benchmark, e.g. g. the yield on government bonds or the swap rate (cf. risk premium ).
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SNB
Swiss central bank founded in 1907. Its mandate under the National Bank Act NBA is to pursue a monetary policy that serves the country’s overall interests and, in particular, to maintain price stability. It also has to contribute to the stability of the financial system. The SNB provides the money market and thus the financial system with liquidity via repo transactions, ensures the supply of cash, manages the currency reserves, represents Switzerland together with the Confederation in the IMF and the World Bank and acts as the house bank of the Confederation. The SNB is organized as a special-law AG and is listed on the SIX. The cantons hold the majority of the shares, the rights of the few private shareholders are also severely curtailed by the NBG, which z. B. limits the amount of the dividend. The organs of the SNB are the eleven-strong Bankrat as a kind of board of directors, the executive three-strong board responsible for monetary policy as management, the general assembly and the auditors.
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Swiss National Bank
Swiss central bank founded in 1907. Its mandate under the National Bank Act NBA is to pursue a monetary policy that serves the country’s overall interests and, in particular, to maintain price stability. It also has to contribute to the stability of the financial system. The SNB provides the money market and thus the financial system with liquidity via repo transactions, ensures the supply of cash, manages the currency reserves, represents Switzerland together with the Confederation in the IMF and the World Bank and acts as the house bank of the Confederation. The SNB is organized as a special-law AG and is listed on the SIX. The cantons hold the majority of the shares, the rights of the few private shareholders are also severely curtailed by the NBG, which z. B. limits the amount of the dividend. The organs of the SNB are the eleven-strong Bankrat as a kind of board of directors, the executive three-strong board responsible for monetary policy as management, the general assembly and the auditors.
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Swap
Individual agreement between parties that includes the exchange of future cash flows. The swap market is dominated by professional participants. Forms: interest rate swap, currency swap, asset swap.
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forward transaction
Purchase or sale contract in which the mutual services are not provided immediately but at a later date, e.g. B. Futures , Forward , Swap . Futures transactions in the broader sense also include options.
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volatility
Price fluctuations of an underlying (cf. historical volatility , implied volatility , vega , volatility analysis , volatility index ).
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Zinskurve
Shows the current yield (yield to maturity) of interest-bearing investments with different maturities and the same quality. Because market expectations are embedded in current yields, the yield curve reflects a consensus investor forecast. Examples are the Confederation yield curve and the swap rate curve.
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