Idiosyncratic Risk- Idiosyncratic risk represents risks that are particular to the conditions and circumstances of one or a defined group of individual borrowers, assets or securities.

 

Implied Equity Premium- Estimated using the current level of index, the expected dividends on stock and the expected growth rate in earnings. The expected growth rate from 1960 to 1985 was estimated using historical growth rates. From 1985 onwards, we use the Zack’s consensus estimate of growth for the stocks in the S&P 500.

 

Implied Volatility- Implied volatility is the estimated volatility of a security's price.IndexIndex is a statistical composite that measures changes, performance, and risk of financial markets.

 

Inflation Rate- Inflation rate is the change in the purchasing power of money expressed as an annual percentage change.

 

Information Security- Information security are the processes, policies, and procedures of protecting information systems from unauthorized access, inproper use, disclosure, disruption, modification or destruction.

 

Innovative Capital- Innovative capital includes complex financial instruments that have both equity and debt features.InsolvencyInsolvency occurs when liabilities exceed assets; while not synonymous with bankruptcy or illiquidity, it typically leads to either or both.

 

Insider Holdings %- Number of shares held by insiders (as defined by the SEC to include corporate officers, directors and those holding more than 5% of the outstanding stock) as a percent of total stock outstanding.

 

Instalment Options- Instalment options are a simple extension of a plain vanilla contract with the added touch of being able to pay the premium of the option over a period of time. One can look at it as a series of compound options as the holder of the option is also able to cancel the instalment option at any of the premium payment periods.

 

Institutional Borrower- An institutional borrower is a financially sophisticated organization such as a large publicly traded company, a hedge fund, a large bank, or a large insurer, who borrows substantial amounts of capital using debt securities or direct borrowing.

 

Institutional Holding %- Number of shares held by mutual funds, pension funds and trusts as a percent of total stock outstanding.

 

Insurance- Insurance provides financial compensation for loss; in exchange for periodic payments the insurer guarantees the insured a sum of money upon the occurrence of an adverse specific event.

 

Interbank Loan- An interbank loan is a loan between banks.

 

Interbank Market- Interbank market is the market where banks trade with each others, and include the interbank foreign exchange and loan market.Interest RateInterest rate, the price of credit, is the rate charged for accessing and using borrowed funds.

 

Interest coverage ratio- Estimated by dividing the after-tax operating income by the interest expense:

Interest coverage ratio = EBIT(1-t) / Interest Expense

 

Interest Rate Margin- The interest rate margin is the difference between the interest income the bank earns on its assets and the interest expense it pays on its liabilities.

 

Interest Rate Risk- Interest rate risk is the potential loss of value due to the variability of interest rates.

 

Interest Rate Swap- Interest rate swap is a contractual agreement under which two parties exchange interest payments of differing nature on an predetermined amount for a known period of time with known frequency.

 

Interest Rate-Risk in the Banking Book- The interest rate risk in the banking book reflects the fact that bank assets and liabilities have different maturities, are priced off different interest rates, and are repriced at different points in time.

 

Internal Assessment Approach (IAA)- The Internal Assessment Approach allows banks to map their internal credit assessment of a securitization exposure to an equivalent external credit rating from a nationally recognized statistical rating organization.

 

Internal Capital Adequacy Assessment Process (ICAAP)- Internal Capital Adequacy Assessment Process is a requirement of the Basel II Accord, and requries banks to hold capital in excess of Pillar 1 minimum capital requirements to ensure that material risks of the firm are adequately covered by capital.

 

Internal Data- Internal data, in terms of operational risk management, relates to operational risk and loss data that is internal to the organization.

 

Internal Fraud- Internal Fraud under the Basel II Accord include operational risk events such the misappropriation of assets, tax evasion, intentional mismarking of positions, and bribery.

 

Internal Process Risk- Internal process risk is the potential loss resulting from improper execution of processes and procedures in conducting a bank's day-to-day operations.

 

Internal Ratings Based (IRB) Approach- Internal Ratings Based approach to determine the regulatory minimum capital requirement for credit risk uses the bank's own information, and includes two different procedures that have methodological differences to forecast the different risk factors.

 

International Bank- An international bank is a commercial, investment or merchant bank with operations in several different countries.

 

Inventory/ Sales- Estimated by dividing the cumulated inventory for the sector by the cumulated sales for the sector.

 

Invested Capital=  Book value of equity + Book value of debt - Cash

 

Investment Bank- An investment bank predominantly deals with corporate and institutional customers, issues financial securities in the financial and capital markets, provides advice on transactions such as mergers and acquisitions, manages investments and trades on its own account.

 

Israeli Options- Israeli options are another variant of the American option. These options give the option seller the ability to cancel the option early - at the expense of a payment to the holder of the option whilst maintaining the early exercise feature for the holder of the option.

 

Issuer- An issuer is a legal entity that sells financial instruments to raise funds to finance its operations; sovereign and local governments, corporations, institutions, and other legal entities are typical issuers.

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