July 2023 - Page 23 of 823 - Dr. Gerhard Merk

In general, doubt with regard to the occurrence of expected circumstances; incertitude: doubt as a state of being unsure of something; lack of clarity. – In economics, in particular, a danger in which – the distribution of the consequences of possible actions is unknown and – therefore cannot ultimately be satisfactorily calculated mathematically – and… read more »

Outsourced risks suddenly reappear in unexpected places. – This was very clearly demonstrated in view of the subprime In the summer of 2007, banks in the U.S.A. transferred receivables to special-purpose entities, which were then tranched by these entities, and these receivables were found en masse in the assets of European banks. Because it became… read more »

A term frequently used by banks for the value date of entries, i.e. the date from which a credit or debit is made or interest calculation begins (the date when the entry to an account is considered effective resp. an interest calculation begins). – According to the terms and conditions of many banks, interest is… read more »

A national means of payment preferred by issuers for issues worldwide; currently, practically the USD, EUR, CHF and JPY. – See dollarization, issue currency, value clause. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard… read more »

Generally, to provide collateral for an unsecured debt; to secure a loan (hence: the physical or financial asset to which a creditor has a claim). – The underlying asset to which an option or future relates (reference value: the security or commodity that is delivered when the option contract is exercised, also called an underlier)…. read more »

In statistics, the ratio of vacancies to the labor force. – See unemployment rate, two-pillar principle. – Cf. ECB Monthly Bulletin of February 2002, pp. 33 f. (information content of the vacancy rate for monetary policy), ECB Monthly Bulletin of October 2010, pp. 52 f. (time series for the vacancy rate in the euro area)…. read more »

As defined by the ECB – external positions of systemically important economies, – reflecting distortions – such as: persistent deficit in the balance of payments – or – posing risks to the global economy. Risks are primarily potential dislocations in financial markets following an unexpected shock, but also increasing protectionism – See event risk, financial… read more »

In terms of maintaining a portfolio, the attempt to sell components that are currently very highly valued due to special circumstances and to use the proceeds to add instantaneously undervalued (it is assumed that these assets are generally valued too negatively) assets to the portfolio. – See analysis, technical, arbitrage, statistical, valuation, Bollinger Bands, bottom-up… read more »

The requirement to treat men and women equally in insurance. – See Bisextarif. – Cf. Annual Report 2003 of BaFin, p. 126 f., p. 175 f. (issues of equal treatment also in occupational pensions), BaFin Annual Report 2004, p. 90, BaFin Annual Report 2012, p. 113 f. (ECJ case law; since December 2012, gender-based calculation… read more »

In jargon, a designation that is equivalent to an urgent recommendation to exit an engagement. The opposite of a buy recommendation is called overweight (a recommendation for investors to decrease their engagement in a particular security, sector, asset class, or market. The opposite it called overweight). – See credit rating, downrating, rating adjustment, rating migration,… read more »