UBS Dictionary of Banking

à la criée / à la criée / à la criée / à la criée
Open outcry trading. French expression for a system of stock market trading where the stock exchange clerks read out the securities in the order they appear on the official quotation list while the dealers gather around the ring and call out the bid and ask prices for each security and make the prices paid known to the registering clerk. Opposite: electronic trading system.

Aa

AAA / AAA / AAA / AAA
Highest debt grade in the rating system used by Standard & Poor's for securities in the international financial markets.

Top

Ab

abandon / abandonnieren / abandonner / abbandonare
To withdraw from a premium deal. See also premium.

above par / über pari / au-dessus du pair / sopra la pari
Term that indicates that the price of a security is higher than its nominal value. Opposite: below par. See also premium.

ABS
Abbr. for asset-backed security.

absolute return / absolute Rendite / rendement absolu / rendimento assoluto
Investment strategy which does not try to beat a benchmark index. Often the goal ist specified as generating a certain performance in excess of a money market rate.

Top

Ac

accept order / Accept-Order / ordre d'acceptation / accept order
On the Swiss Exchange: acceptance of an order that is already contained in the central order book.

acceptance / Akzept / acceptation / accettazione
(1) Written declaration on a bill of exchange that the latter is accepted. Acceptance of the bill of exchange must be declared, although it can also be limited to just part of the amount of the bill of exchange. The drawee of the bill of exchange is bound through acceptance to pay the latter on expiry.
(2) Accepted bill of exchange. Opposite: draft.
(3) Acceptance of a contract tender.

acceptance credit / Akzeptkredit / crédit par acceptation / credito di accettazione
Short-term loan under which the bank permits the customer to draw bills up to a certain amount (credit line). The bills are then accepted and usually also discounted by the bank as agreed.

accessory obligation / akzessorische Sicherheit / droit accessoire / garanzia accessoria
Obligation which is incidental to another principal obligation, e.g. the obligation of a surety or lien. The accessory obligation is extinguished with the principal obligation. Opposite: non-accessory obligation: this form of security is separate from the claim it secures and therefore remains in force without the claim (e.g. a land charge).

account / Konto / compte / conto
Synonym for bank account.

account card / Kontokarte / carte de compte / carta di conto
Plastic card issued to bank customers for the efficient handling of transactions carried out over the counter or via ATMs. The necessary control data, such as the customer's PIN, are stored in the magnetic strip.

account statement / Kontoauszug / relevé de compte / estratto conto
A summary in writing of all account transactions within a given period. Depending on the type of account, interest is calculated on a monthly to yearly basis. Can also be accessed online.

accounting standards / Rechnungslegungsvorschriften / règles de comptabilisation / prescrizioni per l'allestimento dei conti
Legally defined procedures to be followed when compiling company accounts and consolidated accounts. In Switzerland, banks comply with the standards laid down in article 6 of the Swiss Federal Law on Banks and Savings Banks and articles 23-27 of the Banking Ordinance on banks' annual and interim reporting. They also follow the guidelines laid down by the Swiss Federal Banking Commission.

account-only check (US); collection-only check (US) / Verrechnungsscheck / chèque à porter en compte / assegno da accreditare
Cheque bearing the endorsement «for clearing only» or «for crediting only» or similar. Such cheques may not be paid out in cash but can only be credited to the beneficiary. The endorsement cannot be cancelled by crossing it out.

accruals and deferrals / Rechnungsabgrenzung / compte de régularisation / ratei e risconti
Balance sheet item covering expenses and income attributable to a different reporting period to that in which they were paid. See also accrued income and prepaid expenses, accrued expenses and deferred income.

accrued expenses and deferred income / transitorische Passiven / passifs transitoires / ratei e risconti passivi
Accounting apportionment items entered on the liabilities side of the balance sheet, such as income already received during the past financial year but relating to the new financial year, or expenses incurred during the past year but not payable until the following year. Opposite of accrued income and prepaid expenses. See also liabilities.

accrued income and prepaid expenses / transitorische Aktiven / actifs transitoires / ratei e risconti attivi
Accounting apportionment items listed on the assets side of the balance sheet, such as expenses paid during the past financial year, but relating to the new fiscal year.

accrued interest / Marchzins / intérêt couru / interesse pro rata
Interest from the most recent coupon date to the present on an interest-bearing security. Also: broken-period interest.

accumulation fund
Synonym for capital appreciation fund.

acquisition
See takeover.


active management / aktives Management / gestion active / gestione attiva
Portfolio management strategy where the manager makes specific investments with the goal of outperforming a benchmark index.

actuarial reserve / Deckungskapital / réserve mathématique / capitale di copertura
Mathematical calculation of the capital required by an insurance or pension fund to finance expected future benefits.

Top

Ad

addendum / Allonge / allonge / allungamento
A supplement or appendix attached to a document (deed, bill of exchange, registered share) which can be used for endorsements.

additional dividend
Synonym for extra dividend.

adjust / adjustieren / ajuster / rettificare
To correct share prices when there are changes in capital structures, in particular when subscription rights are reduced or in the case of stock splits or reverse splits.

adjustment on conversion / Konversionssoulte / soulte de conversion / saldo di conversione
Cash amount payable to the bondholder on conversion of a bond or payable to the company by the bondholder if the adjustment is negative. It is made up as follows:
(1) Accrued interest if the term of the new bonds begins after the coupon due date of the old ones.
(2) The amount of the difference in interest if the terms overlap and interest rates differ.
(3) The price difference if the new bonds are issued above or below par value.

admission board / Zulassungsstelle / instance d'admission / ufficio di ammissione
Commission of the Swiss Exchange which decides independently on the admission of securities to the Swiss Exchange and defines the attendant reporting obligations of the listed companies.

admission to stock exchange dealing / Börseneinführung / introduction en Bourse / ammissione alla quotazione
Official listing of a security on a stock exchange.

ADR / ADR / ADR / ADR
American Depositary Receipt. Negotiable registered certificate issued on the US market and evidencing title to non-US equity paper. ADRs are registered with the Securities and Exchange Commission (SEC) and quoted in USD. Holders of ADRs essentially enjoy the same ownership and membership rights as shareholders.

advance payment bond / Anzahlungsgarantie / garantie de remboursement d'acomptes / garanzia di rimborso
Guarantee furnished by a bank that in the event of non-performance of an agreement it will reimburse the customer for amounts paid.

Top

Af

affidavit / Affidavit / affidavit / affidavit
Sworn or affirmed written statement to authenticate a claim, especially in securities trading, e.g. regarding the origin and ownership of securities. Statement issued by banks to non-resident holders of certain securities for the purpose of obtaining an exemption from Swiss tax on these securities, as they are already taxed in the holder's country of residence.

after-sight bill / Nachsichtwechsel / traite à un certain délai de vue / cambiale a certo tempo vista
Bill of exchange which becomes payable at a certain date after presentation for acceptance (e.g. after one month).

Top

Ag

agency bond / Agency-Bond / agency bond
Bonds issued by Fannie Mae, Freddie Mac and other agencies.

Top

Al

allfinanz; bancassurance / Allfinanz / bancassurance / bancassicurazione
Combination of banking and insurance services in one financial institution. Sometimes used to refer to the full range of financial services.

allocation / Zuteilung / attribution / assegnazione
(1) Synonym for subscribed allotment.
(2) Allocation of securities reduced on a pro rata basis if supply and demand cannot be matched at a certain price.

allround fund; balanced fund / Allroundfonds / fonds de placement universel / fondo d'investimento allround
Investment fund which is not restricted to any particular countries, regions or sectors and which invests globally.

alpha / Alpha / alpha / alfa
Ratio which expresses the so-called risk-adjusted performance of an investment fund. If the average return on a security or portfolio is larger than its expected return, the alpha is positive. If the average return is smaller than expected, the alpha is negative.

alternative investment / alternative Anlage / placement de substitution / investimento alternativo
Capital investment that is not attributable to the traditional asset classes such as equities, bonds and money market products. Alternative investments show little correlation with the equity and bond markets and are therefore ideally suited as a portfolio diversification. Examples: private equity, hedge funds, commodities and real estate.

Top

Am

American Depositary Receipt
Abbr.: ADR.

American-style option / amerikanische Option / option américaine / opzione americana
Option which can be exercised at any time, including on the expiry date. See also European option.

amortization / Amortisation / amortissement / ammortamento
(1) The reduction of a debt by means of payments in instalments.
(2) Obsolete term for depreciation.

Top

An

annual financial statements / Jahresrechnung / comptes annuels / rendiconto annuale
Part of a company's annual report consisting of the balance sheet, the profit and loss account and the notes. Banks with total assets of CHF 100 million or more which transact a significant amount of balance sheet business are also required to produce a cash flow statement. Annual financial statements are intended to enable as reliable an assessment as possible of the company's asset and earnings situation.

annualized / annualisiert / annualisé / annualizzato
O a figure: extrapolated for part of a year to reflect a hypothetical full year.

anticyclical
Synonym for countercyclical.

Top

Ap

apostille / Apostille / apostille / apostilla
Also: Hague apostille. Form of authentication and legislation introduced between the countries bound by the 1961 Hague Convention abolishing the requirement for legalization of foreign public documents in order to facilitate international legal transactions. The apostille is in the shape of a square measuring 8 x 8 cm and is placed on official public documents. It confirms the authenticity of a public document following presentation of the original, thus waiving the requirement for verification by the consular officials of the country in which the document is intended for use. The apostille is issued by the administrative bodies of the relevant administrative sector. Apostilles for judicial documents are issued by the courts.

application for letter of credit / Akkreditiv-Auftrag / ordre d'ouverture d'un crédit documentaire / ordine d'apertura di un credito documentario
Written request addressed by a customer (buyer) to his bank to open a letter of credit. Notification usually takes place via a correspondent bank. See also documentary credit.

approximate-limit order / Zirka-Auftrag / ordre environ / ordine circa
A stock exchange order where the dealer can exercise a certain degree of discretion with regard to the limits when executing the order.

appurtenance lien / Zugehörpfandrecht / droit de gage sur accessoires / diritto di pegno su beni accessori
A lien on real property which encumbers the land and all movables on it needed to fulfil the purpose of that property. To avoid subsequent disputes, the pledgor must as a rule submit a list of appurtenances to the land register office.

Top

Ar

arbitrage / Arbitrage / arbitrage / arbitraggio
The practice of exploiting local and international price differences for identical assets (e.g. securities, currencies, banknotes) by buying said assets in the market with the lowest prices and selling them in the market with the highest prices. See also interest-rate arbitrage, cash-and-carry arbitrage.

arbitrageur / Arbitrageur / arbitragiste / arbitraggista
Person or firm engaged in arbitrage. Arbitrageurs take substantial positions in value terms in order to profit from extremely small price fluctuations, thus ensuring high market liquidity.

Top

As

as and when issued / as if and when issued / dès parution / as if and when
Clause used in the pre-issue market for securities to specify that the issue of said securities will take place on the terms and conditions and at the time envisaged.

ask price / Briefkurs / cours vendeur / corso lettera
Price or rate at which securities, foreign exchange, foreign bank notes or precious metals are offered for sale. Price is marked A or a for asked. Opposite: bid.

asked
Synonym for ask price.

assented bond / Assented Bond / assented bond / assented bond
US: Bond whose owners have agreed to reduced interest payments or a reduced repayment of principal on the basis of a reorganization or rescheduling plan. See also bond issue in default.

asset allocation / Asset-Allocation / allocation d'actifs / asset allocation
Composition of a portfolio by currency and asset class.

asset allocation fund / Anlagestrategiefonds / fonds de placements diversifiés / fondo a strategia d'investimento
Investment fund which applies the official investment policy of the custodian bank. Depending on the risk category, the asset allocation fund can invest solely in the money market and bonds (income-oriented) or in equities as well (capital-gains-oriented).

asset and liability management / Bilanzstrukturmanagement / gestion des actifs et des passifs / asset and liability management
Reconciliation of the assets, liabilities and off-balance sheet operations of a bank in order to optimize profitability, liquidity and security within the possibilities offered by the law.

asset class / Anlageklasse / catégorie de placement / categoria di investimento
Any collection of assets that reacts in a unique way to the fundamental drivers of the economy. Most important asset classes are equity, fixed income, money market investment, and real estate.

asset management / Asset-Management / gestion d'actifs / asset management
Range of services offered by banks for the active management of a client's assets under a portfolio management mandate. Asset management is essentially synonymous with portfolio management or wealth management but in practice often refers to the service provided to institutional investors. See also institutional investor.

asset management mandate / Verwaltungsvollmacht / pouvoir de gérance / mandato di gestione
Also: portfolio management mandate. Limited power of attorney empowering the authorized agent to perform management and administrative acts, but not conferring any authority with regard to disposal. See also managed account.

asset swap / Asset-Swap / swap d'actifs / asset swap
(1) General exchange of assets or payment obligations.
(2) Also: asset-based swap. Interest rate swap in which the fixed rate payer holds a bond whose cash flow (interest rate, interest payment dates, denomination) is reflected in the swap terms.

asset-backed security / Asset-Backed Security / asset-backed security / asset-backed security
Abbr.: ABS. Bond-like instrument backed by a pool of financial claims such as mortgages or credit-card receivables which enables the originator to raise cash by borrowing against assets. Like with any fixed-income security, the investor is paid a coupon.

assets / Aktiven / actif / attivo
Accounting term for everything a company owns that has monetary value, i.e. as shown in the balance sheet (liquid assets, receivables, property, plant and equipment, investments in associates, etc). Opposite: liabilities. See also easily realizable assets.

assignee / Zessionar / cessionnaire / cessionario
The acquirer of title or interest transferred by an assignor.

assignment / Zession / cession / cessione
The transfer of a claim by written contract between the creditor (assignor) and the party acquiring the claim (assignee). See also blanket assignment, endorsement, undisclosed assignment, assignment in blank.

assignment credit / Zessionskredit / crédit contre cession / credito contro cessione
Book credit secured against the fiduciary assignment of existing receivables. See also discount credit.

assignment in blank / Blankozession / cession en blanc / cessione in bianco
Assignment or detailed specification of assignee. With a separate assignment in blank the assignment is entered on a separate form. See also blank endorsement.

assignor / Zedent / cédant / cedente
The person who transfers title or interest to a third party. See also assignment.

associated company / Beteiligungsgesellschaft / société de participation / società di partecipazione
Company in which another company has a minority holding. See also holding company.

Top

At

at best; at market (USA) / bestens / au mieux / al meglio
Also: unlimited. Order from a client for the purchase or sale of a security to be executed by the bank at the best possible price. No maximum or minimum price is prescribed. See also market order. Opposite: limited.

at market
Synonym for at best.

at par / pari / pair / alla pari
Indicates that the price of the instrument is equal to its face or nominal value. See also issue at par, par value price.

at the money / am Geld / à parité / at the money
Situation where an option has an exercise price equal to or near the current price of the underlying. See also out of the money, in the money.

ATM / Geldausgabe-Automat / distributeur automatique de billets / distributore automatico di banconote
Abbr. for automated teller machine. See Bancomat International.

Top

Au

auction / Auktion / vente aux enchères / asta
Public sale in which goods or services are sold or bought in a bidding process.

Aussie bond / Aussie-Bond / aussie / aussie bond
Bond issued by foreign borrowers and denominated in Australian dollars (AUD).

authentification; official certification
Confirmation of the authenticity of a document, photocopy or signature by an authority or notary, without making any statement on the content. See also legalization, apostille.

authorized bank / ermächtigte Bank / banque habilitée / banca autorizzata
Bank which, in addition to the central paying agency, has been given permission by public authorities or agencies to process decentralized payment transfers.

automated cash deposit machine / Geldeinzahlungs-Automat / appareil de versements automatiques / apparecchio automatico per il versamento di contanti
Machine that accepts banknote deposits for payment into a customer's account. See Bancomat International.

Top

Av

aval
Synonym for bill guarantee.

average
Synonym for middle rate.

average due date / mittlerer Verfall / échéance moyenne / scadenza media
Mean due date for several sums payable at different dates (frequently applies to a bill of exchange).

average price
Synonym for middle rate.

average price method
Synonym for averaging.

average term / mittlere Laufzeit / durée moyenne / durata media
Maturity of a bond based on the average of the earliest and the latest possible redemption date.

averaging / Averaging / averaging / averaging
Also: cost averaging. Strategy of investing fixed amounts in regular purchases of certain securities (equities, investment fund certificates), thereby achieving a lower average purchase price. Investing fixed amounts means that fewer securities are purchased when security prices go up and more are purchased when security prices go down.

Top