Corporate bonds in the U.S. and Eurozone – risks and opportunities

Asia-Pacific (APAC) is the part of the world near the western Pacific Ocean. The Asia-Pacific region includes countries in East Asia, Southeast Asia, and Oceania that border the Pacific Ocean.

 

The Bank of England (BoE) is the UK central bank.

 

The Bank of Japan (BoJ) is the central bank of Japan.

 

Basel IV is a proposed standard on capital reserves for banks.

 

Common Equity Tier 1 (CET1) is a component of Tier 1 capital that is primarily common stock held by a bank or other financial institution.

 

Commercial real estate (CRE) are properties that are primarily used to conduct business and provide income to the property owner.

 

The European Banking Authority (EBA) is an independent EU Authority regulatory agency across the European banking sector.

 

Earnings per share (EPS) are calculated as a companies' net income minus dividends of preferred stock all divided by the total number of shares outstanding.

 

The European Central Bank (ECB) is the central bank for the Eurozone.

 

The Eurozone is formed of 20 European Union member states that have adopted the euro as their common currency and sole legal tender.

 

EUR is the currency code for the euro, the currency of the Eurozone.

 

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation's financial system.

 

A regulated clearing organization that deals with the confirmation, settlement, and delivery of fixed-income assets in the United States is known by the name Fixed Income Clearing Corporation (FICC).

 

Banks above a cut-off score are identified as G-SIBs and are allocated to buckets that will be used to determine their higher loss absorbency requirement.

 

In order to guarantee that financial institutions can continue to meet short-term obligations, the liquidity coverage ratio (LCR) refers to the percentage of highly liquid assets held by those institutions.

 

NTM stands for next twelve months in the context of earnings and thus price/earnings ratios.

 

The People’s Bank of China (PBoC) is the central bank of the People's Republic of China.

 

Price/book (P/B) ratios measure a company's share price relative to its tangible assets.

 

Price/earnings (P/E) ratios measure a company's current share price relative to its per-share earnings. In this context, LTM refers to last twelve months' earnings.

 

Recovery and Resilience Plan (RRP or in Italian PNRR) is Italy's investment and reform plan for recovery from the Covid-19 emergency approved by the EU.

 

Risk-weighted assets (RWA) is a term used to determine minimum capital bank need to keep as reserve to reduce the risk of insolvency.

 

The Stoxx Europe 600 includes 600 companies across 18 European Union countries.

 

A systemically important financial institution (SIFI) is a bank, insurance company, or other financial institution whose failure might trigger a financial crisis.

 

The Single Resolution Fund (SRF) is an emergency fund that can be called upon in times of crisis.

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