Accounts Payable /Sales- Estimated by dividing the cumulated accounts payable for the sector by the cumulated sales for the sector.

 

Accounts Receivable/Sales- Estimated by dividing the cumulated accounts receivable for the sector by the cumulated sales for the sector.

 

Alpha- Estimated from the intercept of the monthly return regression of stock returns against market returns, using the last 5 years of data, as follows:(Jensen’s)

Alpha = Intercept - Riskfree Rate (1 - Beta)

The number is annualized by compounding over 12 months.

 

Annual Returns- The annual returns on stocks, bonds and bills are estimated by adding the price appreciation during the year to the dividends (or coupons) paid on the security during the year.

 

Advanced Internal Ratings Based Approach- The Advanced Internal Ratings Based Approach refers to a set of credit risk measurement techniques and capital adequacy rules outlined in the Basel II Accord that allows banks to develop their own empirical models to quantify the most inputs to quantify their required capital for credit risk.

 

Advanced Measurement Approach (AMA)- The Advanced Measurement Approach is a sophisticated approach to calculate operational risk capital and allows the bank to use internally generated models to calculate their operational risk capital requirements.

 

Alpha Quantile Options- Alpha-Quantile Options are similar to lookback options in the sense that the payoff is based on a lookback period but differs in that the payoff is on the smallest level where the asset spends a portion of its time in during the option life and not just a specified level as in standard lookbacks.

 

American Options- The second group of options classified as vanilla options are American options. These options allow the holder of the option the ability to exercise the option at any point in time up to maturity. American options are the most commonly traded options in the market.

 

​Amortised Options- Amortised options, sometimes referred to as Whale options, where the payoff is typically given as the difference between the average asset price over the averaging period and the strike price (typically given as a percentage of the underlying price) as a ratio over the average asset price.

 

Amortization- Amortization is the repayment of debt in regular installments over a period of time.

 

Asian Option- An Asian option is a financial derivative and its final pay-off is determined by the average price of the underlying asset at specific dates or during a specific pricing window.

 

Asian Options- Asian options are options in which the underlying variable is the average price over a period of time. Because of this fact, Asian options have a lower volatility and hence rendering them cheaper relative to their European counterparts. They are commonly traded on currencies and commodity products which have low trading volumes.

 

Asset and Liability Management (ALM)- The Asset and Liability Management (ALM) function in a bank manages the risks caused by asset and liability mismatches as well as the interest rate risk in the bank's banking book and the bank's liquidity risk.

 

Asset Backed Security (ABS)- Asset-backed securities, backed by pools of mortgage loans or other types of securitizable cash flow generating assets, are sold to investors who then receive payments based on the cash flows generated by the assets in the underlying pool,

 

Asset Based Loan- Asset based loans allow the borrower to pledge a specific asset or a combination of assets, such as inventory, machinery or equipment, as collateral to cover a loan.

 

Asset Liability Committee (ALCO)- Asset Liability Committee (ALCO) is typically a committee of senior managers and board members tasked with executing and overseeing the banks ALM activities.

 

Asset Management- Asset management is the management of financial assets and non-financial assets, and financial instruments to meet specified investment objectives; often refers to investment management.

 

Asset Management Company (AMC)- An Asset Management Company (AMC) is an often separate entity tasked with managing assets on behalf of a principal; in banking and credit risk management, it typically refers to the long-term management a bad bank that manages, with a long-term mandate, non-performing loans and assets to maximize the maximal recovery value of those.

 

Asset Transformation- Asset transformation is the process of creating a new asset (loan) from liabilities (deposits) with different characteristics by converting small denomination, immediately available and relatively risk free bank deposits into loans- new relatively risky, large denomination asset- that are repaid following a set schedule.

 

Assets- Assets are tangible or intangible claims with economic value that an individual, corporation or other entity owns or controls with the expectation that it will provide future benefit.

 

Audit- An audit is the unbiased examination, analysis, and evaluation of an organization's financial position, business activities and internal processes executed internally, by employees of the organization, and/or externally, by an outside entity.

ר רועי פולניצר, MBA ,CRM , FRM הינו הבעלים של שווי פנימי - ייעוץ והדרכהשווי פנימי, רועי פולניצר, ניהול סיכונים, הערכות שווי, Intrinsic Value, Roi Polanitzer, Risk Management, Valuation, VaR, FRM. PRM, CRM. GARP, PRMIA, IARM