Added value on Intangibles representing discrete reserves of the Company is often called as Goodwill. This is very often created in moment, when for instance Company Lenovo buys part of IBM business, company or another its Division and pays for it substantially higher price then what is just the accounting value. Lenovo is willing to […]

ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc. Since 1985, ISDA has worked to make the global derivatives markets safer and more efficient. Today, ISDA has more than 900 member institutions from 69 countries. These members comprise a broad range of derivatives market participants, including corporations, investment managers, government and […]

Broadly speaking, events of default may occur where one party is at fault. The party at fault is known as the ‘defaulting party’, and the other party is referred to as the ‘non-defaulting party’. Upon the occurrence of an event of default, a party may elect to terminate all transactions under the ISDAMaster Agreement. The […]

an alternative to Commercial Papers/Bonds typically placed on German capital market, which are not traded on public market and the Issuer does not need to have external rating, as each Subscriber like Bank, Investment fund or Asset Manager makes its own credit assessment with regard to the quality of Issuer. In addition, the Issuer protocol […]

these instruments represent widely used funding tools for Corporates, Municipals and Governments that are acknowledged Issuers of the Debt on capital markets and are widelly recognized as Bonds. These types of Securities are issued at certain face value, have fixed maturity date and bear certain Yield (e.g. 2,55% p.a. in case of fix, or a […]

protection tool in Derivatives (FX, IR and Commodities) to limit the opened loss position towards Counterparty throughout the entire life-time of the deal. This means that any deal may be concluded for longer period (like an FX-swap for 3YRS), however Margin call enables to assess the real market-to-market position stemming from movement of spot FX […]

interest rate set for entire period of deal life-time and does not underlie to any changes on interbank market thus fully eliminating the risk of potential changes in interbank rates. For the Borrower it represents a positive aspect that in case of long-term financing it can easily forecast and budget the future total loan installments. […]

Interest rate set based on market rate like PRIBOR, EURIBOR set for certain time period (1M, 3M, 6M, 12M…) very often used as a basis for short-term financing, however especially in cases of low market rates the Client prefer to receive floating rate even on a long-term financing thus exposing themselves to the risk of […]

Clients interest rate agreed on Loans incl. the Costs of funds for the Bank and the Margin. This should reflect the Borrowers risk (usually derived per internal Bank rating scale and transformed into Probability of Default) and received collateral for this financing (materialized through Loss-given Default). The Margin is main element for generating the interest […]

Banks internal rate for funding the lending activities usually derived from Offer rate on interbank market resp. from real Costs of funds when such sources are not easily available on market (long tenor resp. intra-Group sources). Funding represents interest costs for the Bank. The credit agreements usually make reference to any market rate like PRIBOR, […]