Annualised performance: The annualized performance of a fund is the conversion of the performance of an investment into an annual base.
Beta: The Beta is a coefficient of volatility and / or duration indicating to what extent an asset evolves in the same proportions as the market.
Bond: A bond is a debt representing the portion of a bond issued by public or private companies (this is called a corporate bond) or by the State or local authorities. A bond therefore represents a debt to the investor.
Call date: Deadline at which the issuer has the option to repay its debt.
Convertible contingent bond (or AT1 / Coco): Fixed or perpetual maturity bonds that can absorb certain losses or be converted into equity when the issuer's capital level falls below a predefined threshold.
Correlation: In finance, it is a statistic that measures the degree of the relationship between two securities.
Duration: This is the weighted average life of bond flows. Using this indicator, investors can compare bonds with differing residuals, coupons and amortization intervals.
FRN or Floating Rate Notes: A floating rate note is a debt security whose timing is not perfectly known on issue. The coupon (payment of interest) of a floating rate note is not fixed, but is indexed to an observable rate (generally a short-term rate, the Euribor 6 months for example).
Gross return: Income generated by investments before any deduction, whether charges or taxes.
Hedge strategy: Risk reduction strategy in which investors and traders take opposite positions in a given instrument in order to reduce their risk profile.
High Yield: High Yield bonds are bond issues that offer a high return in exchange for a high level of risk. The issuers concerned are often companies in difficulty or with a high level of indebtedness associated with a small amount of equity. This gives a highly speculative character to these titles.
Investment Grade: The term “Investment grade” applies 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, as presenting a low risk of non-repayment.
Long-only management: Traditional (or long-only) management is characterized by managers taking long positions in the markets they anticipate rising. This strategy exposes the portfolio to the risk of falling markets.
Maturity: The maturity of a financial security is the space of time that separates today from the final maturity date of this security, at which time it will definitively disappear. Thus, a bond that comes in repayment in 2020 has a maturity of 8 years in 2012.
Subordinated debt: A subordinated debt has the particular characteristic of being repaid after the repayment of the other creditors of that debt. Subordinated debt is a financial instrument with a high level of risk.
Old generation securities: An asset that is in the accounts of the company for a long period. This type of asset has generally decreased in value to the point of loss for the company. The term comes from the literal meaning of obsolete.
Modified duration: The modified duration of a fund or bond measures the impact of changes in interest rates on the value of the fund or bond. A modified duration of "+ n" indicates that the value will increase by "n%" if interest rates fall by 1%, and its value will decrease by "n%" in the event of a 1% increase in interest rates. %. The modified duration of a UCITS is therefore an indicator of interest rate risk.
Share: The share is a part of the equity of a company. It has an unlimited life (the exit can be done only by transfer of the share, there is no repayment provided for contractually), and its bearer runs the total risk of the company.
Spread: Refers generally to the difference between two rates or two prices.
Swap: The swap is an exchange transaction, which takes place by mutual agreement between two parties. The swap may relate to an asset. The swap consists, for example, in an exchange of two debts denominated in two different currencies. The swap is also often about interest rates. The swap is one of the most popular trades in over-the-counter derivatives markets.
Track record: Past results, evaluation of investment performance. The track record is the basic tool for assessing the sustainability of an investment in the production of a performance.
Top-down: An investment strategy used by portfolio managers. This method pays little attention to the selected value, unlike the bottom-up strategy.
Valuation: To give a value to an asset.
Value / Value Management: The value management style consists of investing in assets whose market price is lower than their intrinsic value.
Volatility: Volatility is the magnitude of the price changes of a financial asset. It serves as a parameter for quantifying the risk of return and the price of a financial asset. When volatility is high, the possibility of gain is greater, but so is the risk of loss.