Apr 24, 2016 19:49
8 yrs ago
1 viewer *
English term
leverage(d)
English to Swedish
Bus/Financial
Finance (general)
financial products
Credit Tranche products usually benefit from a protection cushion before starting to lose the investment but have a leveraged exposure so the investor will lose more per credit event after the protection period compared to a linear product. For example in a basket with 100 companies with zero recovery, a linear product would have an exposure of 1% per company. If you however have a 10%-20% tranche this means that the product is protected against the first 10% loss (the first 10 credit events) but the investor will lose all invested capital in case of more than a 20% loss (20 credit events) which means the loss is 10% of the investment per credit event.
In the above example, the product has a leveraged credit portfolio of 10 times since the loss is 10 times more per credit event. This is referred to as the Reference Credit Portfolio, with a size being the multiple of the investment amount. For example, a 10 times leveraged credit tranche product with an initial investment of 100,000 SEK would have a reference credit portfolio of 1,000,000 SEK.
Potentially exposed to leveraged losses: All the investment of the Credit Tranche product is at risk on a portion, a “Tranche” of the leveraged reference portfolio.
In the above example, the product has a leveraged credit portfolio of 10 times since the loss is 10 times more per credit event. This is referred to as the Reference Credit Portfolio, with a size being the multiple of the investment amount. For example, a 10 times leveraged credit tranche product with an initial investment of 100,000 SEK would have a reference credit portfolio of 1,000,000 SEK.
Potentially exposed to leveraged losses: All the investment of the Credit Tranche product is at risk on a portion, a “Tranche” of the leveraged reference portfolio.
Proposed translations
(Swedish)
5 +2 | hävstångs- | Anders Köhler |
3 -1 | fördel(aktig) | Tor Leif Carpenhammar |
Proposed translations
+2
12 hrs
Selected
hävstångs-
Här blir det alltså "hävstångsexponering", googla gärna uttrycket.
4 KudoZ points awarded for this answer.
Comment: "Tack!"
-1
8 hrs
fördel(aktig)
Bara en känsla jag fick när jag såg ordet, så skickar in den tanken ifall den kan vara till någon hjälp.
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