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Financial glossary

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Rating agencies

Rating agencies are entities assessing the credit quality of issuers and securities and assigning ratings accordingly. The three main rating agencies are Moody’s, Standard & Poor’s and Fitch. Credit ratings measure the debtor’s probability of default. Analysis is based on qualitative and quantitative information.

Repurchase agreement

A repurchase agreement (REPO) is the combination of an asset sale with the commitment to repurchase it at a specified date and price. Similar to securitised lending, a REPO also enables the lender to have legal ownership of the security until the term of the transaction ends (the lender may therefore re-use this security for other REPO operations).

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