Action: A share is part of a company's equity capital. It has an unlimited lifespan (it can only be disposed of by selling the share; there are no contractual redemption terms), and its holder bears the full risk of the company.
Beta : It is a volatility and/or sensitivity coefficient indicating the extent to which an asset evolves in the same proportions as the market.
Correlation : In finance, this is a statistic that measures the degree of relationship between two securities.
Call date : Maturity at which the issuer has the option of repaying its debt.
Financial subordinated debt : A subordinated debt has the particular feature of being repaid after the other creditors of this debt have been repaid. Subordinated debt is a financial instrument with a high level of risk.
Duration : This is the weighted average life of bond flows. Using this indicator, investors can compare bonds with different residual durations, coupons and amortization periods.
FRN or Floating Rate Notes : A floating-rate bond is a debt security whose cash flow schedule is not perfectly known at the time of issue. The coupon (interest payment) on a floating-rate bond is not fixed, but indexed to an observable rate (usually a short-term rate, such as 6-month Euribor).
Gestion Bottom-up ou stock picking : this method of stock selection focuses first and foremost on the specific characteristics of each stock, rather than those of the sector or country in which the company operates.
Gestion long only : Traditional (or long-only) management is characterized by managers taking long positions in markets they expect to rise. This strategy exposes the portfolio to the risk of market downturns.
Value management : The value management style consists of investing in assets whose market price is lower than their intrinsic value.
Spread : generally refers to the difference or differential between two rates or prices.
High Yield: High-yield bonds are bond issues offering a high yield in return for a high level of risk. The issuers concerned are often companies in difficulty or with high levels of debt combined with low levels of equity. This makes these securities highly speculative.
Investment Grade : Investment grade refers to the quality of securities issued by an issuer of negotiable debt securities or bonds. This is the case for investment-grade bonds, which are considered by the various rating agencies to present a low risk of non-repayment.
Maturity : The maturity of a financial security is the length of time between today and the security's final maturity date, when it will disappear for good. For example, a bond redeemable in 2020 has a maturity of 8 years in 2012.
Obligation : A bond is a debt security representing the portion of a debenture loan issued either by public or private companies (referred to as a corporate bond), or by the State or local authorities. A bond therefore represents a debt owed to the investor.
Contingent convertible bond (or AT1 / Coco) : Bonds with a fixed or perpetual maturity that can absorb certain losses or be converted into equity (shares) when the issuer's capital level falls below a predefined threshold.
Annualized performance : A fund's annualized performance is the conversion of an investment's performance on an annual basis.
Gross yield : Income generated by investments before any deductions for expenses or taxes.
Sensitivity : The sensitivity of a fund or bond measures the impact of changes in interest rates on the value of the fund or bond. A sensitivity of "+ n" indicates that the value will rise by "n%" if interest rates fall by 1%, and that its value will fall by "n%" if interest rates rise by 1%. The sensitivity of a mutual fund is therefore an indicator of interest-rate risk.
Hedging strategy : Risk reduction strategy whereby investors and traders take opposite positions in a given instrument in order to reduce their risk profile.
Swap : A swap is an over-the-counter exchange transaction between two parties. The swap may relate to an asset or a liability. For example, a swap involves the exchange of two debts denominated in two different currencies. Interest rate swaps are also common. Swaps are among the most widely traded transactions on OTC derivatives markets.
Older-generation titles : An asset that has been in the company's accounts for a long period of time. This type of asset has generally declined in value to the point of loss for the company. The term comes from the literal meaning of obsolete.
Top-down : An investment strategy used by portfolio managers. In contrast to the Bottom Up strategy, this method pays little attention to the value selected.
Track record : Past results, evaluation of investment performance. Track record is the basic tool for assessing the sustainability of an investment in terms of performance.
Valuation : The exercise of assigning a value to an asset.
Volatility : Volatility is the extent to which the price of a financial asset varies. It serves as a parameter for quantifying the return and price risk of a financial asset. When volatility is high, the possibility of gain is greater, but so is the risk of loss.