What's new at Moneyterms http://moneyterms.co.uk/feeds/new-rss/ Latest additions to Moneyterms: definitions and explanations of investment and finance terms and concepts. en-GB Copyright Graeme Pietersz, all rights reserved. Copyright years as shown on site. This feed is provided only for personal and private use. 120 CDO squared http://moneyterms.co.uk/cdo-squared/ A CDO squared is a CDO that is backed by other CDOs.

]]> Sun, 20 Dec 2009 09:22:05 +0000 http://moneyterms.co.uk/cdo-squared/ Default admin account Post-modern portfolio theory (PMPT) http://moneyterms.co.uk/pmpt/ Post-modern portfolio theory (PMPT) differs from modern (Markowitz) portfolio theory (MPT) in both how risk is measured and in how returns are distributed.

]]> Fri, 11 Dec 2009 16:02:08 +0000 http://moneyterms.co.uk/pmpt/ Default admin account Market portfolio http://moneyterms.co.uk/market-portfolio/ The market portfolio is a portfolio containing every available asset in proportion to the value of it that exists (i.e.

]]> Thu, 10 Dec 2009 12:31:09 +0000 http://moneyterms.co.uk/market-portfolio/ Default admin account Market Consistent Embedded Value (MCEV) http://moneyterms.co.uk/mcev/ Market Consistent Embedded Value (MCEV) is essentially a tightening up of the of previous embedded value rules such as EEV in order to improve inter-company comparisons.

The need for MCEV is a result of the failure of EEV t

]]> Mon, 07 Dec 2009 07:05:33 +0000 http://moneyterms.co.uk/mcev/ Default admin account Thin capitalisation http://moneyterms.co.uk/thin-capitalisation/ Thin capitalisation is a very high level of gearing: it occurs when a company is funded almost entirely by debt with only a nominal amount of equity.

This is usually a problem primarily from the point of view of tax authoritie

]]> Wed, 18 Nov 2009 12:11:54 +0000 http://moneyterms.co.uk/thin-capitalisation/ Default admin account Contingent convertible bonds (CoCo bonds) http://moneyterms.co.uk/coco/ Contingent convertible bonds (CoCo bonds) are convertibles that convert, or become convertible, is a specified event occurs, rather than being simply convertible at the option of the bond holder.

A typical CoCo bond is a bond that is automatically converted to equity

]]> Tue, 17 Nov 2009 07:46:37 +0000 http://moneyterms.co.uk/coco/ Default admin account Cyclically adjusted PE ratio (CAPE) http://moneyterms.co.uk/cape/ The cyclically adjusted PE ratio (CAPE) is a modification of the PE ratio to account for the effect on profits of the economic cycle.

The PE ratio calculated at any point in time is affected by the current state of the economy.

]]> Sat, 14 Nov 2009 11:56:31 +0000 http://moneyterms.co.uk/cape/ Default admin account Reserve replacement ratio http://moneyterms.co.uk/reserve-replacement-ratio/ An oil company's reserve replacement ratio is the amount added to its reserves divided by the amount extracted.

]]> Tue, 03 Nov 2009 12:54:19 +0000 http://moneyterms.co.uk/reserve-replacement-ratio/ Default admin account Argus Sour Crude Index http://moneyterms.co.uk/argus-sour-crude/ The Argus Sour Crude Index is a crude oil index published by Argus media.

]]> Tue, 03 Nov 2009 06:02:14 +0000 http://moneyterms.co.uk/argus-sour-crude/ Default admin account Piotroski's F-score http://moneyterms.co.uk/f-score/ The Piotroski F-score is a measure of the financial strength of a company.

]]> Sun, 11 Oct 2009 13:46:44 +0100 http://moneyterms.co.uk/f-score/ Default admin account Volatility smile/volatility skew http://moneyterms.co.uk/volatility-smile/ The volatility smile or volatility skew is the variation of the implied volatility of an option with its strike price.

]]> Fri, 25 Sep 2009 08:31:03 +0100 http://moneyterms.co.uk/volatility-smile/ Default admin account Algorithmic trading http://moneyterms.co.uk/algorithmic-trading/ Algorithmic trading is the automated entry of buy and sell orders. This is sometimes used to mean all automated trading.

]]> Tue, 22 Sep 2009 19:41:42 +0100 http://moneyterms.co.uk/algorithmic-trading/ Default admin account ECN (electronic communications network) http://moneyterms.co.uk/ecn/ An electronic communications network (ECN) is a trading venue that is not regulated as a stock exchange, usually a matched bargain ATS that offers lower costs than the primary exchanges.

]]> Tue, 22 Sep 2009 18:58:15 +0100 http://moneyterms.co.uk/ecn/ Default admin account Dark pool of liquidity http://moneyterms.co.uk/dark-pool/ A dark pool of liquidity, or crossing network, is a trading venue in which large orders can be placed without making them visible to the market.

]]> Tue, 22 Sep 2009 11:25:08 +0100 http://moneyterms.co.uk/dark-pool/ Default admin account Iceberg order http://moneyterms.co.uk/iceberg-order/ An iceberg order is a large order that is broken up into small orders to disguise the interest of a single large buyer or seller.

]]> Tue, 22 Sep 2009 08:34:53 +0100 http://moneyterms.co.uk/iceberg-order/ Default admin account High frequency trading http://moneyterms.co.uk/high-frequency-trading/ High frequency trading is the placing of very large numbers of orders in a short time: sometimes thousands of orders a second. This covers a wide range of automated proprietary trading strategies that rely on fast execution to be profitable.

]]> Sun, 20 Sep 2009 22:55:31 +0100 http://moneyterms.co.uk/high-frequency-trading/ Default admin account Swaption http://moneyterms.co.uk/swaption/ A swaption is an option on a swap. It gives the holder the right to enter into the swap, without any obligation to do so.

]]> Mon, 14 Sep 2009 23:12:24 +0100 http://moneyterms.co.uk/swaption/ Default admin account Constructive liability http://moneyterms.co.uk/constructive-liability/ A constructive obligation is an obligation to pay that arises out of conduct and intent rather than a contract. A constructive obligation may need to be shown on the balance sheet as a liability.

A constructive obligation typically occurs from past conduct.

]]> Fri, 28 Aug 2009 07:57:24 +0100 http://moneyterms.co.uk/constructive-liability/ Default admin account Quantitative finance http://moneyterms.co.uk/quantitative-finance/ Quantitative finance, also called mathematical finance, is the application of mathematics to finance.

]]> Tue, 18 Aug 2009 11:27:23 +0100 http://moneyterms.co.uk/quantitative-finance/ Default admin account Value trap http://moneyterms.co.uk/value-trap/ A value trap is a share that looks cheap on the metrics used by value investors, but which deserves its low rating.

The typical value trap has a low share price by historical standards, so investors buy it expecting a recovery — it looks like a bargain price because

]]> Wed, 15 Jul 2009 06:38:33 +0100 http://moneyterms.co.uk/value-trap/ Default admin account