UBS Dictionary of Banking

Ub

UBS AG / UBS AG / UBS SA / UBS SA
One of Switzerland's big banks, created in 1998 from the merger of Union Bank of Switzerland (also UBS) and Swiss Bank Corporation (SBC).

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Uc

UCITS / OGAW / OPCVM / OICVM
Abbreviation for undertaking for collective investment in transferable securities. Undertakings under EU law whose sole object is the collective investment in transferable securities of capital raised from the public, which operate on the principle of risk diversification and where the units are, at the holders' request, repurchased or redeemed, directly or indirectly, out of those undertakings' assets.

UCP / ERA / RUU / NUU
Abbreviation for Uniform Customs and Practice for Documentary Credits prepared by the International Chamber of Commerce.

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Um

umbrella fund / Umbrella-Fonds / fonds à compartiments multiples / fondo a ombrello
Fund construction comprising several subfunds. Since the subfunds together form a single legal entity (umbrella), it is only necessary to submit the umbrella fund for authorization. Once the umbrella has been authorized, further subfunds may be created. Investors may switch from one subfund to another free of commissions. See also investment fund, fund of funds.

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Un

uncovered position / Découvert / découvert / scoperto
(1) The seller of an uncovered position is still under obligation to deliver them.
(2) Shortage of units due to an excessive number of short sales.
(3) An uncovered amount under a Lombard loan.

underlying
Synonym for underlying asset.

underlying asset / Basiswert / valeur sous-jacente / sottostante
Also: underlying. Instrument on which an option or futures contract is based. The main underlying assets are currencies, bonds, equities and equity indices as well as precious metals. See also financial future.

Underperform
Rating of a stock relative to the relevant sector. Over a specific investment horizon, the stock's performance is expected to be 10% or more below that of the benchmark.

undervaluation / Unterbewertung / sous-évaluation / sottovalutazione
A security is said to be undervalued if its valuation is excessively low. Opposite: overvaluation.

underweight / Underweight / sous-pondération / sottopeso
Qualification of securities as part of an analyst's recommendations stating that the investor would be best advised to hold a lower weighting in this security than in others or in relation to a benchmark.

underwriter / Underwriter / preneur ferme / underwriter
Bank or intermediary that commits itself to taking up an unsold portion of a securities issue after placement.

underwriter listed in prospectus / En-nom-Beteiligung / participation en nom / partecipazione «en-nom»
Term denoting participation in an underwriting syndicate by being named in the issue prospectus. The underwriter is listed like a syndicate member but is strictly speaking only a sub-participant because he has signed neither the loan agreement nor the syndicate agreement. See also sub-participation.

underwriting agreement / Übernahmevertrag / contrat de prise ferme / contratto di assunzione a fermo
Agreement concluded between the issuer and underwriting syndicate concerning the direct underwriting of a new securities issue.

underwriting price / Übernahmepreis / prix de prise ferme / prezzo di assunzione a fermo
The price to be paid by the banks to issuers for the direct underwriting of a new securities issue. The difference between the issue price and the underwriting price is the banks' gross profit margin (underwriting fee).

underwriting syndicate / Emissionssyndikat / syndicat d'émission / sindacato di emissione
Also: underwriting consortium. Temporary association (consortium) of two or more investment banks for the joint underwriting of a securities issue.

undisclosed assignment / stille Zession / cession sans notification / cessione tacita
Assignment not disclosed to the borrower.

undisclosed reserves / stille Reserven / réserves latentes / riserve occulte
Also: hidden reserves. Reserves not shown in the balance sheet of a company; for example, if the market value of an asset is higher than its book value. Other forms: replacement reserves (maintenance of real-asset values and equity capital) and other undisclosed reserves. In Switzerland, any dissolution of undisclosed reserves which has a significant impact on the company's results must be declared in the annual financial statements. Undisclosed reserves enhance a company's creditworthiness. Opposite: disclosed reserves. See also reserves.

UN-EDIFACT / UN-EDIFACT / UN-EDIFACT / UN/EDIFACT
Acronym for United Nations/Electronic Data Interchange for Administration, Commerce and Transport, a set of regulations defined and continually adapted by the United Nations which is specifically developed for the electronic exchange of data. It establishes the norms for business and trade processes and counteracts proprietary standards within specific industries. UN/EDIFACT is applied worldwide and enables process integration between software programs of all participating companies.

unit / Anteil / part / quota
Synonym for fund unit.

unit certificate / Anteilschein / certificat de fonds de placement / certificato di quota
Certificate of participation in an investment fund issued as a security without par value.

unit of account / Rechnungseinheit / unité de compte / unità di conto
Specially defined unit used in international payments, which is not in fact a real payment medium. Also used for international bond issues and for the deposits of international institutions. One example is the special drawing right (SDR) of the IMF and the ECU prior to the introduction of the euro.

unit of currency
Synonym for currency unit.

unit trust
Synonym for investment fund.

universal bank
Synonym for full-service bank.

unlimited / unlimitiert / illimité / senza limite
Synonym for at best.

unlimited order
Synonym for market order.

unlisted security / unkotiertes Wertpapier; nicht kotiertes Wertpapier / titre non coté / titolo non quotato
Security which is not listed for trading on an official stock exchange. See also over-the-counter trading.

unsecured credit / Blankokredit crédit en blanc / credito in bianco
Loan granted on the strength of the borrower's credit history or reputation. Opposite: secured credit.

unpaid capital
Synonym for non-paid up capital.

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Up

upgrade / Upgrade / upgrade / upgrade
Positive change in ratings for a security. An example is an analyst's upgrading of a stock such as from "sell" to "buy".

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Us

US GAAP / US-GAAP / US-GAAP / US-GAAP
Abbr. for United States Generally Accepted Accounting Principles.

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Ut

Utilities / Versorgungsbetriebe / Services aux collectivités / Servizi di pubblica utilità
Equity sector incorporating shares of companies producing, transporting and/or distributing electricity, gas or water to end users. The respective MSCI Sector index acts as a benchmark for shares of companies belonging to this sector.

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