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Financial glossary

W

Warrant

A warrant is a security offering the right (but not the obligation) to purchase underlying stocks of an issuing company at a specified price and date. Unlike call options, warrants are issued by the underlying entity itself.

Waterfall

A waterfall represents a set of rules which define the prioritisation of payments of an asset. According to a waterfall, subordinated investors start receiving principal only when senior investors are fully reimbursed.

Weighted average life (WAL)

The weighted average life (WAL) of a securitised product measures the time taken for half the security’s principal to be repaid. The weighted average life is the most common figure to assess the maturity of a securitised product.

West Texas Intermediate (WTI)

West Texas Intermediate (WTI) is a sweet light crude oil (lighter than Brent Crude) used as the underlying for oil futures contracts traded in the New York Mercantile Exchange.

Withholding tax

A tax levied on income (interest and dividends) from securities owned by a non-resident

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