Glossary

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CAGR
CAGR (Compound Annual Growth Rate)

The year-over-year growth rate of an investment over a specified period of time.
CDS
CDS (Credit Default Swap)

A swap designed to transfer the credit exposure of fixed income products between parties.
CFD (Contract For Differences)
CFD (Contract For Differences)

Un contrat entre deux partie où l’une des parties est « acheteuse » et l’autre « vendeuse », stipulant que l'acheteur encaissera ou décaissera la différence entre le prix de l'actif au moment de sa vente et son prix au moment de l’exécution du contrat.
Convertible Bond
Convertible Bond

A bond that is convertible into a specified number of shares of the issuing company at a stated conversion price.
Delta
Delta

A measure of the relationship between the price of an option and the price of the underlying stock.
Dividend yield
Dividend yield

Annual dividends per share / Price per share
DPS (Dynamic Portfolio Swap)
DPS (Dynamic Portfolio Swap)

A credit portfolio derivative, specifically a portfolio default swap in which the protection buyer may change the actual composition of the portfolio over the term of the agreement, based on comprehensive criteria to select the assets or obligations forming part of the portfolio.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

Analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.
EBIT (Earnings Before Interest and Taxes)
EBIT (Earnings Before Interest and Taxes)

Bénéfice avant intérêts et impôts ou résultat avant intérêts et impôts. Il correspond au chiffre d'affaires net duquel sont déduites les charges d'exploitation (telles que salaires, cotisations sociales, matières, énergie, etc.). Il se distingue du bénéfice net par le fait que les charges et produits financiers (intérêts actifs et passifs, produits et charges de titres) ainsi que les impôts sur le bénéfice ne sont pas pris en compte.
EPS
EPS (Earnings Per Share)

The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
EV
EV (Enterprise Value)

Market value of common stock + market value of preferred equity + market value of debt + minority interest - cash and investments.
FCF
FCF (Free Cash Flow)

A measure of financial performance calculated as operating cash flow minus capital expenditures. FCF is calculated as: EBIT(1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure.
IG
IG (Investment Grade)

Investment grade issue or issuer ratings are all ratings above BBB — or Baa — included.
LFL
LFL (Like-For-Like)

A comparison of this year's sales to last year's sales in a particular company, taking into consideration only those activities that were in effect during both time periods. Like-for-like sales is a method of valuation that attempts to exclude any effects of expansion, acquisition, foreign currency effects or any other event that artificially enlarge a company's sales. Companies may disclose like-for-like sales for various time periods, such as quarterly and yearly.
Maturity
Maturity

The time when a bond or other debt instrument is due to for redemption (is due to mature); or the length of time between the issue of such an instrument and the date it is due for redemption (the maturity date).
Modified Duration
Modified Duration

A method of estimating a bond's price volatility, expressed in terms of the weighted average term-to-maturity of all the bond's remaining cash flows - interest and principal. For example, a duration of 5 years means that the price of the bond will change by 5 per cent for every 100 basis point change in yield.
ND/EBITDA
ND/EBITDA (Net Debt / EBITDA)

A measurement of leverage, calculated as a company's interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt to EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant.
NIG
NIG (Non-Investment Grade debt)

Non investment grade issue or issuer ratings are all ratings between BBB and BB+.
Operating Margin
Operating Margin

A measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.
P/CF (Share price/Cash Flow per Share)
P/CF (Share price/Cash Flow per Share)

Le Cours sur Cash Flow est un ratio financier calculé en divisant le cours de l’action par le cash flow par action. Par exemple, un ratio P/CF de 10 indique que pour 1 € de cash-flow dans la société, le cours de l’action de celle-ci est de 10 €. Les ratios P/CF diffèrent considérablement entre secteurs. Ils seront beaucoup plus faibles dans les secteurs à forte intensité capitalistique (l’industrie notamment) que dans le secteur des services, du software par exemple.
PER
PER (Price Earnings Ratio)

A company's share price divided by the amount of profits it makes for each share in a 12-month period. PE ratios are normally calculated on the base of all the profit made in the period, whether or not the profit is paid out to shareholders in that period.
P.S.
P.S. (Participating Shares)

Shares that do not give the holder voting rights at shareholder meetings. Close to an investment certificate.
ROE
ROE (Return On Equity)

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
Spéculative grade
Spéculative grade

Speculative grade issue or issuer ratings are all ratings below BB+ or Ba+ included, down to CC-.
TLTRO
TLTRO (Targeted Longer-Term Refinancing Operations)

Improving bank lending to the euro area non-financial private sector, excluding loans to households for house purchase.
YTM
YTM (Yield to Maturity)

Estimate of the yield that would be earned on a bond if it were held to its maturity date. The calculation assumes that the interest regularly received on the bond is re-invested and generates the same yield as the YTM.