The asset manager for a changing world

Financial glossary

M

Margin call

A margin call is the daily amount received (paid) by (to) the counterparty of a derivative transaction that has a positive (negative) daily valuation. This process enables a reduction of counterparty risk as it cancels, on a daily basis, the credit exposure to the derivative counterparty.

Marked-to–market

Marked-to-market is a valuation mode used to record the price of a security for its market value (price at which the security can actually be sold in the market). Other accounting methodologies (fair value, historical cost) can also be used to value a security.

Marked-to–market

Marked-to-market is a valuation mode used to record the price of a security for its market value (price at which the security can actually be sold in the market). Other accounting methodologies (fair value, historical cost) can also be used to value a security.

Maturity

The length of time until the principal amount of a bond must be repaid

Maximum drawdown

The maximum drawdown is the maximum loss a portfolio has incurred between two dates.

Money market

Market where the buying, selling, lending and borrowing of short-term funds (less than one year) occur.

Murabaha

In Islamic finance, a murabaha is a contract which refers to the sale of an asset at a price which includes a profit level initially agreed by both parties of the contract. Therefore, this contract is valid if price, associated costs and profit margins are initially defined and stated (at the time of the sale agreement).

Mutual Fund

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management.

UCITS OFFER NO GUARANTEED RETURNS AND PAST PERFORMANCES DO NOT GUARANTEE FUTURE ONES