Glossary 2012

IFR Asia Awards 2012
3 min read

Some alternative definitions for the themes of the year

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18th Party Congress:Excuse used by China-focused bankers for not doing anything in the first three quarters of 2012
ATM:In Singapore, an alternative to debt syndicate
Book size:In bonds, an arbitrary number generated according to the formula (Fund manager orders x 12) + (Private bank orders x 200)
Bridge Loan:A temporary line of credit before China Development Bank signs off on a massive term loan
Bubble:Period of excess that comes immediately before multiple government bailouts
Bumi:1. (Bahasa Indonesia) Earth, indigenous people 2. (City of London) Expletive
Business trust:A popular yield play combined with unwanted exposure to an actual business
Cash bonus:A myth used to lure impressionable young graduates into investment banking
Connect the dots:1. Simple children’s game 2. Universal bank strategy
Credit rating:Alphabetical scale allowing Asian investors to compare everything else to Singapore
Cross-selling:Direct line from investment bank sales to wealth management
Disintermediation:Allowing investors make their own mistakes
ECM banker:Endangered species (See Investment bank)
Evergreen:Descriptive term for an Indian loan that will neither default nor be repaid
Facebook:High-tech excuse for dearth of IPOs this year
Fosun (verb):To see things through, despite knowing almost certain disaster awaits
Fully allocated:Undersubscribed, especially when describing an underwritten share placement
G3 bonds:(See Bubble)
Hedge fund:An investor capable of losing money in all market conditions
High-yield:Over 3%
Independent research firm:A team of analysts providing a diligent third-party view of overpriced stocks – and certainly not an individual who lives in his parents’ basement and tries to make money by scaring investors with mathematically loose reports on Asian companies
Investment bank:Endangered habitat
Investment-grade bond:A bet against inflation
IPO:Initially Private Offering
Issue manager:Definition unknown, but it makes banks feel more important while working on IPOs
Leverage:Trick used by wealthy individuals and stock traders to make low-risk bonds seem more exciting
Malaysian IPO:In 2012, Asia’s most dependable source of equity capital, and a failsafe investment. Unless referring to Astro
Muddy waters:Ancient Chinese proverb to do with upsetting Singapore
Oversubscription:The result of private banks sending in padded orders
Passive bookrunner:(First use: 2012) Co-lead manager
Peanuts:Currency unit of choice for Indian investment banking fees
Perpetual:About five years
Premarketing:In IPOs, an exercise to prove to a company that its deal won't work
Rebate:Guarantee that a private banker will still make money even if the actual buyer ends up losing his shirt
Restructuring:In Indonesia, replacing term debt with perpetual notes or, rarely, equity. In India, replacing one revolving credit with another (See Evergreen)
Security pass:In investment banking, something which might not allow the holder into the building one morning
Sovereign mandate:The result of an all-expenses-paid junket
Syndicated loan:Fall-back option for a company unable to sell a bond
Trust:In China, an investment opportunity that works only as long as no questions are asked
Universal bank:Preferred business model for risk-averse financial institutions