Glossary 2016

IFR Asia Awards 2016
4 min read
Asia

Alternative definitions of the year’s buzzwords

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Glossary 2016
Glossary
AnbangNoise made by an inflated acquisition bid shortly before it disappears
Anchor investorLead manager
Asia strategyRetreat
AT1The riskiest kind of bank capital notes except in Asia, where they are safer than European senior bonds
BakeoffA process in which participants compete for a title, but sometimes end up with burnt fingers and a soggy bottom
Basic lawInternationally recognised, centuries-old legal framework that occasionally needs interpretation from Beijing
Benchmark sizeAt least US$500m. On a bad day, US$300m. If it’s Chinese high-yield, about US$100m
Black moneyWhat happens to a rupee banknote when it gets hidden under a dirty mattress
BrexitBrexit means Brexit (see Brexit)
Business classAvailable as an upgrade at traveller’s expense
Circuit breakerMechanism designed to give Chinese equity traders the afternoon off
CornerstoneUniversally hated feature of any Hong Kong IPO. Unless you’re involved, in which case an essential part of ‘de-risking’
CrowdfundingWay to sell risky Singapore bonds without getting banks in trouble
DefaultEvent occurring when a Singapore high-yield bond nears maturity
FeeIn Chinese IPOs, a commission that may be paid after 6–12 months, if you ask nicely
FintechWhat awaits bankers after gardening leave
Fixed-for-lifePerpetual investment option for supposedly sophisticated investors who believe rates will never, ever go up
Green bondsNotes sold by an issuer that has installed a bicycle rack at its head office
IPOInvesting Plenty Overseas
Lead orderDeposit paid in advance of an underwriting fee
Lending velocityTime taken to flip a syndicated loan to a Taiwanese bank
Leveraged loanBorrowing money from western banks
LGFVMarketing term used to help loss-making, overleveraged Chinese funding vehicles sell bonds overseas
LocalistOpponent of globalisation. And of China
Lock-up periodWhatever Morgan Stanley says it is
Masala bondNice and spicy Indian dish, but one that leaves a strong aftertaste
National securityExcuse used not to sell something to China
Necktie(Australian) Compulsory attire for all Credit Suisse investment bankers, including analysts working at 1am
Negative ratesCentral bank tool to lower bank profits and pump up stock markets
NIRPJapanese expletive
NPLIn China, ideal collateral for a securitisation
OffsiteGoing upstairs for a video conference
Panda (verb)To beg for permission to sell bonds in China
PollsterAnyone paid to predict something that won’t happen
Princeling
Overpaid photocopier
Share of wallet#DIV/0!
Socially responsible bondsNotes sold by an issuer that was too tight to pay for green certification
Special drawing rightsA lucky dip in which Chinese institutions learn how many SDR bonds they have been ordered to buy
Special mention loansDefinitely not NPLs
SponsorDefendant
Stabilisation agentModern day equivalent of Sisyphus and the rock
Syndicated loanBorrowing money from more than one Chinese or Japanese bank
TLACA strategy to make senior bonds more confusing
Trump (verb)1. To break wind.
2. To outrank or defeat.
3. To blow up bond markets
Wanda (verb)To go shopping, especially in Hollywood
WeChatA high-tech Chinese system for placing bond orders
X ordersA way to make bookrunners cross
YieldA return paid by issuers to bond investors, or sometimes vice versa
Yield curve controlAttempt to reverse previous course without coming off the rails