Macauley's Duration- Macauley's duration is one of the approaches to quantify a bond's duration and approximates the percentage change in bond price for change in yield.

 

Margin- Margin (requirement) is the amount investors must post to their brokers and the brokers are obligated to post with the clearinghouse, and is determined by various considerations including the different types of instruments the broker trades on the exchange, the risk of the instrument, and the overall trading volume.

 

Market Capitalization- Estimated market value of equity, obtained by multiplying the number of shares outstanding by the share price.

 

Market Debt Ratio- This is the market value estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated market value of equity for the entire sector. We assume that the book value of debt is roughly equal to the market value of debt.

 

Marked-to-Market- Marked-to-market (accounting) assigns a value to an asset that reflects the value it would fetch on the market.

 

Market Liquidity- Market liquidity risk refers to the ability to trade assets with negligible price concessions.

 

Market Risk- Market risk is defined as the risk of losses in on- and off-balance-sheet positions arising from movements in market prices, and typically encompass the risks pertaining to interest rate related instruments and equities in the trading book, and foreign exchange risk and commodities risk throughout the bank.

 

Market Risk Amendment- The market risk amendment of 1996 required banks to maintain regulatory minimum capital against the bank's positions in various market-traded financial assets such as foreign exchange, fixed income, equity, commodities, and derivatives. It is now superseded by The Basel II Accord which incorporated significant proportions of the amendment.

 

Market Risk Capital- Market risk capital is capital allocated against possible market losses.

 

Maturity- Maturity is the time period until a loan, bond or other credit is repaid fully.

 

Medium-Term Lending- Medium-term lending has a maturity not exceeding three or five years and finances ongoing investments in machinery, equipment or facilities, or cyclical needs.

 

Modified Duration (MD)- Modified duration is one of the approaches to quantify a bond's duration and approximates the percentage change in bond price for a 1% change in yield.

 

Monetary Policy- Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest. Monetary policy is usually used to attain a set of objectives oriented towards the growth and stability of the economy.

 

Monetary Stability- Monetary stability reflect the extent the value of money can be maintained and as a synonym of price stability, implies low and stable inflation.

 

Money- Money serves as a medium of exchange, legal tender, basis for trade and acts as a unit of account and store of value.

 

Money Multiplier- The money multiplier, the inverse of the reserve requirement, indicates how much additional money each unit of money, deposited with a bank, creates.

 

Mortgage- A mortgage finances the purchase of real estate that serves as collateral.includes, but is not limited to, the risk associated with the uncertainty of legal actions or the application or interpretation of contracts, laws, or regulations and can include potential exposure to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements.

 

Mountain Range Options- In 1998, Societe Generale launched a line of products which eventually contributed to SG gaining the award for their equity derivatives house in 2001. We highlight the pricing of these so-called “Mountain Range” options, a series of path-dependent options consisting of a basket of assets, assessing the problems associated in deriving reasonable pricing valuation for these types of options and finally, highlight the troublesome hedging features of mountain ranges.

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