ISIN

ISIN is an abbreviation of International Securities Identification Number – a unique number assigned to each quoted security so that it can be easily identified

Disinflation

A slowing of the pace of price inflation

Amortising is the process whereby a loan is paid off gradually by making additional payments to the lender in addition to interest payments. Loans can amortise to zero or amortise to a balloon payment.

Fiscal Tightening

Tightening is a form of monetary policy whereby central banks such as the Bank of England attempt to slow down overheated economic growth, to constrict spending in an economy that is seen to be accelerating too quickly, or to curb inflation when it is rising too fast.

Stagflation

An economic cycle where growth is slowing despite rising inflation

Duration

Duration, in the context of a bond, is used as a measure of the sensitivity of a bond to changes in interest rates. Expressed in years, it represents the weighted average of the time it will take to receive all the cash flows from a bond. A bond with most of its cash flows due […]

Cash drag

When part of a portfolio is invested in cash or cash-equivalent securities, as opposed to securities which are the portfolio’s main focus, the cash component has no market exposure. This effect is referred to as cash drag. In a situation where markets are rising, cash tends to underperform markets and cash drag is negative. Conversely, where markets are […]

ASEAN

The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organisation comprising ten Southeast Asian countries which promotes Pan-Asianism and intergovernmental cooperation and facilitates economic, political, security, military, educational and socio-cultural integration amongst its members and other Asian countries, and globally. Since its formation on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand, the organisation’s membership has expanded to include Brunei, Cambodia, Laos, Myanmar and Vietnam. Its principal aims include accelerating economic growth, social progress, and socio-cultural evolution among its members, alongside the protection of regional […]

Core Capital

Core capital or Tier 1 capital is the reserves that a bank has to back its business activities. It composed of disclosed reserves and common stock/ordinary shares. It can also include non-cumulative, non-redeemable preferred stock. As well as core capital, banks also use instruments to accumulate Tier 1 capital, such as preference shares and CoCos. […]

Bull market

A bull market is one in which a general mood of optimism sees a trend of securities prices rising, over a sustained period (rather than a short term correction). The opposite condition is a bear market. Both bear and bull market spirals can become self sustaining. For example, in a bull market, rising confidence can lead to buying, which […]

crowdfunding

Crowdfunding involves a number of people coming together to fund a project or a business. The process of fundraising is usually coordinated on a website and promoted through social media.

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ISIN