Financial Markets

  • fixed rate bond

    A fixed-rate bond promises interest payments calculated at a rate established when it is issued. That rate remains unchanged until maturity, although the bond may later …

  • fixed rate instrument

    A fixed-rate instrument pays interest at a rate set when it is issued and held constant until maturity or the end of its contractual term. The …

  • foreign currency holding

    A foreign-currency holding measures an entity’s net exposure to one specified currency. It is calculated by subtracting liabilities in that currency from the corresponding claims. Each …

  • equity

    Equity denotes the ownership interest in a corporation or quasi-corporation. It represents the amount attributable to owners once the entity’s liabilities have been deducted from its …

  • foreign exchange forward

    A foreign-exchange forward fixes an exchange rate today for a currency transaction that will be settled on a later date. One party will then deliver a …

  • equity market

    Equity markets channel investment into corporate ownership. Companies obtain funds by offering ownership claims to investors, while those investors can later trade the claims among themselves. …

  • foreign exchange operations

    Foreign exchange operations cover transactions that change the currency in which funds are denominated. In the Eurosystem, the term is used for dealings involving a foreign …

  • linked trade EN

    A linked trade is a securities transaction whose settlement depends on securities obtained in a separate transaction. The second transaction cannot be settled until the relevant …

  • liquidity EN

    Liquidity denotes the availability of funds for making payments and the ease with which an asset can be realised as cash. Cash itself has the highest …

  • longer-term interest rates EN

    Long-term interest rates describe the return on, or financing cost of, financial claims that mature after a comparatively extended period. A sovereign bond with ten years …