M&A (Mergers and Acquisitions)
The activity of acquiring and reorganising companies and consulting on these topics.
The residual life of an exposure calculated according to prudential rules. Banks authorised to use internal ratings explicitly consider maturity if the advanced method is adopted, whereas it is set at 2.5 years under the basic approach.
MTS (screen-based market for government securities)
A screen-based channel for trading in government securities on the secondary market. Established by provision of the Italian Ministry of the Treasury dated 8.2.1998.
The negative difference between a benchmark index, typically an interbank interest rate, and the rate applied to customer deposits.
The process of valuating a portfolio of securities or other financial instruments on the basis of market prices.
The positive difference between a benchmark index, typically an interbank interest rate, and the rate applied to customer loans.
Effect of the fluctuation of securities and exchange rates on the amount of aggregates determined at market values (for example, indirect deposits).
An activity performed by specialised intermediaries that undertake to quote ongoing buying and selling prices for one or more investment assets and to honour and satisfy requests for predetermined minimum sums by other entities.
The risk that the value of on- or off-balance sheet assets or liabilities may fluctuate due to changes in market prices or factors, such as interest rates, exchange rates, and the performance of the stock market
A parameter used to measure the risk that the quality of a loan may deteriorate over time and cause the bank to lose value. For example, if a loan is issued to a client with an A rating, i.e. enjoying particularly favourable conditions, deterioration of the client's rating (from A to B) would entail a loss for the bank. In fact, the client, who now has a B rating, would enjoy the rate set for clients with A ratings, and consequently below the proper level. It goes without saying that the risk of deterioration of loan quality rises in proportion to the client's rating and the term of the loan (see also the entry for "Basel 2").
This term refers to the subscription of debt or equity securities by corporate clients in order to place them on the market, the acquisition of long-term equity investments intended for sale, and business consulting on mergers, acquisitions, and restructuring.
In securitisation, the tranche with a degree of subordination between that of the junior notes and senior notes.
Loans issued for small amounts under special conditions to persons who are usually excluded from banking channels in an attempt to increase employment and entrepreneurship.
Multistrategy / funds of funds
Funds that do not invest according to a single strategy, but rather in a portfolio of various strategies or investment funds managed by third parties.