S
Sale and leaseback:
A transaction whereby a person or a company purchases an asset from its owner
and then Leases it back to him. The lessee therefore receives the sale price and
continues to enjoy the use of the asset against payment of the lease fee.
Français: Vente couplée à un crédit-bail
Español: Venta y retrocesión en arrendamiento
Sales Representatives:
An Agent who distributes, represents, provides sale services or sells goods on
behalf of a supplier from the same or another country.
Français: Représentant de ventes
Español: Representante de ventas
Salvage value:
The estimated selling price of an asset (such as plant or equipment) once its Book
value has been fully Depreciated.
Français: Valeur de récupération
Español: Valor residual
Samurai bonds:
Yen-denominated Bonds issued in Japan by foreign borrowers. Compare
with Bulldog bonds and Yankee bonds.
Français: Obligations Samouraï
Español: Bono samurai
Samurai lease:
A yen-denominated Lease subsidized by MITI to finance the purchase of
equipment located outside Japan.
Français: Bail Samouraï
Español: Arrendamiento Samurai
Saving bank:
A bank whose main business is accepting interest-bearing Savings deposits of
varying amounts.
Français: Banque d'épargne
Español: Caja de ahorros
Savings deposits:
Accounts which pay interest, generally at below-market interest rates. They do
not have a specific maturity and may usually be withdrawn upon demand.
Français: Dépôts d'épargne
Español: Depósito (en caja) de ahorro
Script certificate:
(1) A written obligation by the bank, acting as paying agent for a security issue,
to deliver the definitive certificates as soon as issued to the subscriber.
(2) A type of Waybill accompanying merchandise shipments.
Français: Script certificate
Español: Certificado provisional, título provisional
SDR:
Abbreviation for Special Drawing Right.
Français: DTS
Español: SDR
Second of exchange:
The duplicate of a draft drawn in original and duplicate.
Français: Deuxième de l'échange
Español: Duplicado de una letra de cambio
Secondary market:
A market where securities are traded after having been issued and distributed on
the Primary market. This is the market for "second-hand" trading of financial
instruments. Most trading is done on the secondary markets. The New York
Stock Exchange and other world stock exchanges, bond markets, etc. are all
secondary markets.
Français: Marché secondaire
Español: Mercado secundario
Secured creditor:
A creditor who owns debt obligations backed by pledged assets.
Français: Créancier garanti
Español: Acreedor garantizado
Securities:
Debt certificates (such as Notes, Equity, loan stocks, Bonds or other debt
instruments) which prove the ownership (or rights of ownership) of the same.
Français: Titres
Español: Títulos, valores, efectos
Securitization:
(1) The securing of a loan or another debt instrument by the pledge of assets.
(2) The phenomenon whereby corporate borrowers find it cheaper to raise
money by issuing negotiable securities on the Capital market, rather than
borrowing from the bank.
Français: Sécuritization
Español: Securitization
Security lending:
The lending of securities over a period of time.
Français: Prêt de titres
Español: Préstamo en valores
Security requirement:
A guarantee of payment required by export credit agencies before agreeing to
extend cover in certain markets, depending on the legal and administrative
system of the borrowing countries. Such a guarantee usually consists of an
irrevocable Letter of credit, a confirmed irrevocable letter of credit or a
guarantee issued by the local government or Central Bank.
Français: Exigence de garantie
Español: Requisición de garantía
Self-liquidating loan:
A loan extended to finance the purchase of current assets. The sale of such assets
provides the cash to repay the loan.
Français: Prêt auto-amortissable
Español: Préstamo autoamortizable
Seller (writer) of an option:
The seller of an option is committed to deliver/buy the underlying security if the
buyer of the option exercises his right on a Call/Put option at the strike price.
Français: Vendeur d'une option
Español: Vendedor de una opción
Seller's option:
A provision in a contract which allows the seller to vary the quantities to be
delivered by a certain percentage. The contract may also provide options on any
other contractual clause, for example the delivery schedule.
Français: Option du vendeur
Español: Opción del vendedor
Selling group:
This refers to the banks and other financial institutions brought together by
a Syndicate manager to sell or market a new issue of securities to the public.
Français: Groupe de vente
Español: Sindicato de venta, sindicato de colocación
Semi-convertible currency:
A currency which may be bought or sold only through the Central Bank and at
specific fixed exchange rate.
Français: Monnaie-semi convertible
Español: Divisa parcialmente convertible
Separate entity approach:
A tax system whereby each economic unit is taxed when it receives income, e.g. a
firm will be taxed on its profits and the firm’s shareholders will also be taxed on
the Dividends paid to them from the firm's profits.
Français: Approche séparée des entités
Español: Enfoque unitario
Settlement dates:
The specified days on which the Forward and futures transactions previously
concluded are paid, and delivery of the underlying assets is made (i.e.
the Liquidation dates).
Français: Dates de règlement
Español: Fecha de liquidación
Share capital (UK); Capital stock (US):
The amount of money subscribed by the shareholders, At par, to a company.
Français: Capital actions, Capital de dotation
Español: Capital en acciones, capital social
Shareholders:
The persons or entities owning a share in a corporation. Compare
with Bondholders.
Français: Actionnaires
Español: Accionista
Shareholders' equity:
The Book value of the company’s net assets (i.e. total assets less total liabilities).
Français: Fonds propres
Español: Patrimonio neto
Share premium:
See Paid in surplus.
Français: Prime sur action
Español: Share premium
Share index:
An index showing the changes in the average prices of shares or a group of
shares on the stock market.
Français: Indice sur actions
Español: Indice de cotización de las acciones
Ship's manifest:
A written instrument signed by the captain of a vessel, listing the individual
shipments constituting the vessel's cargo.
Français: Manifeste du bateau
Español: Manifiesto de buque
Shipment:
All of the cargo carried under the terms of a single bill of lading .
Français: Expédition
Español: Expedición, embarque
Shogun bonds:
Non-yen denominated bonds issued in Japan by non-residents. See also Foreign
bonds.
Français: Obligations Shogun
Español: Bono shogun
Short hedge:
The sale of a futures contract to hedge a market position, i.e. to eliminate or
decrease the risk of a decline in the value of an asset (securities, commodities,
foreign exchange etc.), or to anticipate a borrowing need. Opposite: Long hedge.
Français: Vendre à terme
Español: Cobertura con posición corta, cobertura corta
Shogun lease:
A cross border loan (characterized as a Lease) offered by Japanese leasing
companies, which may be used as leverage debt in a Leverage lease or simply as a
private placement.
Français: Bail Shogun
Español: Arrendamiento shogun
Short position:
The situation of an investor who has sold securities or commodities without
actually owning them, on the expectation that the price of these securities or
commodities will fall. A short position must eventually be covered by an
offsetting purchase of the securities or commodities sold. Opposite: Long
position.
Français: Position "short"
Español: Posición corta
Short-term commitments:
Commitments which provide for settlement within a relatively short period of
time, usually six months (though short-term may sometimes refer to
commitments with repayment terms of up to two years). Short-term credit is
usually related to the sale of consumer goods and raw materials.
Français: Engagements à court terme
Español: Compromisos a corto plazo
Sight deposits:
Deposits which may be transferred or withdrawn on demand from a bank. They
typically earn little or no interest. In most countries the main kind of sight
deposit account is a cheque account. Compare with Saving deposits.
Français: Dépôts à vue
Español: Depósito a la vista
Sight draft; Sight bill:
A bill of Exchange which becomes due for payment as soon as it is presented to
the party obligated to pay, and in general a draft payable upon presentation to
the drawee. Compare with Date draft, time draft.
Français: Traite à vue, Effet à vue
Español: Letra a la vista, efecto a la vista
Simple interest:
The interest rate on a loan based only on the initial amount of the loan. Over
time, the interest charges grow in a linear fashion. e.g. a $1000 loan earning
simple interest of 10% per annum would accumulate to $1100 at the end of the
first year, $1200 to the end of the second year, etc. Compare with Compound
interest.
Français: Intérêt simple
Español: Interés simple
Sinking Fund:
A sum of money usually set aside at regular intervals which will earn compound
interest, ultimately sufficient to meet a known future capital commitment or loan
repayment. Sinking funds may, for instance, be used to finance the replacement
of Fixed assets at the end of their useful life or to redeem loans, stocks or other
debentures upon maturity.
Français: Fonds d'amortissement
Español: Fondo de amortización
Sinking fund requirement:
A condition sometimes included in corporate bond contracts whereby the issuer
is required to withdraw a specified portion of debt each year. Any principal due
at maturity is called the balloon maturity.
Français: Exigence relative au fonds d'amortissement
Español: Requisito de fondo de amortización
Society of Worldwide Interbank Financial Telecommunication:
See Swift.
Français: Society of Worldwide Interbank Financial Telecommunication
Español: Sociedad para las Telecomunicaciones Financieras Interbancarias
Mundiales
Soft currency:
This refers to a weak currency which is a less desirable means of payment than
other currencies. Countries with weak currencies are those which tend to have
frequent currency devaluation, balance of payments difficulties or political
instability. A soft currency is usually not fully convertible to all currencies but
only perhaps to some other "weak" currencies. Contrast with Hard or strong
currency.
Français: Monnaie faible
Español: Moneda débil, moneda blanda
Soft loan:
A loan by a government or multilateral Development bank which carries no (or
below market rate) interest, although there is usually a small annual service
charge. It is typically extended to developing countries and has a long repayment
period. See also Concessional funds.
Français: Prêt bonifié
Español: Préstamo en condiciones favorables
Solvency:
The ability of a borrower to meet obligations as they become due.
Opposite: Insolvency.
Français: Solvabilité
Español: Solvencia
Solvency ratio:
The ratio between a bank's capital and its assets. See also Capital ratio.
Français: Rapport de solvabilité
Español: Razón de solvencia
Special drawing right (SDR):
A unit of account issued and allocated by the IMF to its member states. It
represents an international, non convertible paper money created by the IMF,
which member countries may use in case of deficit in their balance of
international payments to settle debts with another country, or with the IMF.
Français: Droits de tirages spéciaux (DTS)
Español: Derecho especial de giro (DEG)
Special Marine Policy:
See Ocean marine insurance policy.
Français: Police maritime spéciale
Español: Póliza marítima especial
Special Purpose Corporation (SPC):
An independent corporation especially created, even if sometimes with a nominal
capital, with the purpose of holding property titles, channelling funds for an
export project or project financing.
Français: Société à but spécial
Español: Sociedad de carácter especial
Specific duty:
See duty.
Français: Droit spécifique
Español: Derecho específico
Specific Policy/Coverage:
A policy covering an individual export contract against failure to receive the
sums due from the foreign buyer. An ECA may charge a higher premium for
Specific Coverage than for Comprehensive Coverage because of the "selected
risk" nature of the coverage.
Français: Police/Couverture spécifique
Español: Póliza específica
Speculator:
A person who takes Positions on the market in an attempt to anticipate price
changes, with the aim of earning a profit. A speculator does not use the market in
connection with the production, processing, marketing or handling of a product.
Compare with Trader.
Français: Spéculateurs
Español: Especulador
Spot market:
The market for the purchase and sale of commodities, securities and other
financial instruments for immediate delivery, as opposed to a Futures
market which provides for delivery at some future point in time. By consensus,
immediate delivery is understood as two business days.
Français: Marché au comptant
Español: Mercado de entrega inmediata, mercado al contado
Spot price:
The current market price of an actual physical commodity or a security. Also
called cash price.
Français: Prix au comptant
Español: Tipo al contado, cotización al contado
Spot rate:
In foreign exchange dealings this is the rate quoted for immediate delivery of a
foreign currency.
Français: Taux au comptant
Español: Precio de entrega inmediata
Spread:
(1) The gap between the Bid and ask prices of a security, commodity or foreign
exchange.
(2) The difference between the spot and forward rates (in foreign exchange
trading), or price (for trade in commodities or securities).
Français: Ecart de cours
Español: Margen, diferencial
Stagflation:
A term indicating the combination of slow economic growth (stagnation) and
price increases (inflation).
Français: Stagnation avec inflation
Español: Estancamiento con inflación, estanflación
Standard and Poors:
One of the top credit Rating agencies.
Français: Standard and Poors
Español: Standard and Poors
Standard International Trade Classification (SITC):
An international trade classification system developed by the United Nations in
1950 and used solely by international organizations.
Français: Standard International Trade Classification (SITC)
Español: Clasificación Uniforme para el Comercio Internacional (CUCI)
Standby agreement:
In a securities issue, this is an agreement by the underwriter to purchase any
stock not taken up by public investors, in return for a standby fee.
Français: Accord Standby
Español: Acuerdo de compromiso contingente
Stand-by arrangement:
An arrangement whereby members of the IMF have the right to borrow a
certain percentage of the quota allocated to them by the Fund, for a given period
of time. The stand-by arrangement specifies the amount the country may
borrow, when, for how long and under what terms. The arrangements are
extended for up to three years and are typically intended as bridging loans for
countries with balance-of-payment difficulties.
Français: Accord "standby"
Español: Acuerdo de derecho de giro
Standby Credits:
These are arrangements to lend money in case of need, usually at market rates
and sometimes with a commitment fee. Overdraft facilities are sometimes used as
standbys by corporate borrowers.
Français: Crédits "standby"
Español: Línea de crédito
Standby Letter of Credit:
A letter of credit which is usually issued as a guarantee against the non-fulfilment
of a contract. Standby letters of credit do not constitute a means of payment but
are a guarantee of indemnity in case of non-execution of the contract by the
exporter. They are generally used to guarantee financial obligations or
contractual performance obligations. Compare with Letter of credit.
Français: Lettre de crédit "Standby"
Español: Carta de crédito contingente
State trading enterprises (STEs):
Government agencies especially established for the conduct of international
trading activities, such as government-operated import/export monopolies and
marketing boards with special or exclusive privileges to import and export. They
are sometimes also engaged in the direct manufacturing of certain export
products.
Français: Entreprise étatique de négoce
Español: Empresas comerciales del Estado, empresas de comercio de Estado
Stepped FRN:
A Floating Rate Note where the spread changes over time or on a pre-set basis.
Français: FRN à paliers
Español: Bono con interés flotante y escalonado
Stocks:
(1) Ownership of a corporation which is represented by its Shares.
(2) Shares traded on the stock exchange.
(3) Inventories held by companies in warehouses.
Français: Actions; Inventaire
Español: Existencias
Stock-output ratio:
The ratio of Inventories to the company's total output.
Français: Ratio: Stock-production
Español: Relación entre existencias y producción
Straight debt:
A fixed interest rate bond (such as an Eurobond) or loan without the option
of Conversion into equity.
Français: Dette sans option
Español: Bono de interés fijo
Straight letter of credit:
A letter of credit in which the opening bank simply promises to pay the
beneficiary.
Français: Lettre de crédit normale (directe)
Español: Carta de crédito irrevocable
Straights (straight bonds; straight issues):
A bond or other security issued without any Conversion or Warrant clause, but
which yields a fixed interest rate for the entire period up to maturity.
Français: Ordinaires (obligations ordinaires, émissions ordinaires)
Español: Obligación ordinaria
Strike price:
The price at which Put options and Call options can be exercised (i.e. to sell for a
put or to buy for a call). The options are 'in the money' or 'out the money'
depending on whether the difference between the strike price and the spot price
on the markets is positive or negative. The strike price is sometimes called the
exercise price.
Français: Prix d'exercice
Español: Precio de ejercicio
Subject to collection:
A clause whereby the bank has the right to reverse or cancel a credit entry if the
counter value of the Promissory notes or other debt certificates (such as Bills of
exchange, Drafts and cheques) cannot be collected.
Français: Sujet à encaissement
Español: Sujeto a cobranza
Subordinated bond:
An unsecured bond which ranks after secured debt, Debenture bonds and, in the
case of Liquidation of the issuing company, often also after some general
creditors.
Français: Obligation subordonnée
Español: Bono secundario
Subordinated debt:
In the event of bankruptcy of the borrower, senior debt takes priority over
subordinated debt in terms of repayment of the relative debt claims.
Français: Dette subordonnée
Español: Deuda no prioritaria
Subordination:
(1) A clause sometimes inserted in the terms of a share issue whereby the rights
of the shareholders rank after the rights of some, or all, unsecured creditors of
the borrower in the event of his Liquidation.
(2) A provision in a bond’s issue whereby, in the event of a new bond issue, the
new lenders' claims are subordinated to the claims of the existing bondholders.
Français: Subordination
Español: Subordinación
Subordination strategy:
A policy of the Paris Club creditors whereby loans extended after the cut-off
date are not subject to Rescheduling.
Français: Stratégie subordonnée
Español: Estrategia de subordinación
Subscription policy:
A policy defining the general conditions of the guarantee but leaving the exporter
the choice whether to subscribe or not.
Français: Politique de souscription
Español: Póliza de subscripción
Sunk costs:
Costs which have already been incurred and cannot be reversed.
Français: Sunk costs
Español: Costo irrecuperable
Suppliers' credit:
A financing arrangement under which an exporter extends credit to a foreign
importer to finance his purchase. Usually the importer pays a portion of the
contract value in cash and issues a Promissory note or accepts a draft as evidence
of his obligation to pay the balance over a period of time. The exporter thus
accepts a deferred payment from the importer, and may be able to obtain cash
payment by discounting or selling the draft or promissory notes created with his
bank. Compare with Buyer’s credit.
Français: Crédit fournisseur
Español: Crédito al proveedor, crédito suministrador, crédito de proveedores
Supplier Credit Financing:
A trade financing arrangement by which a bank or an ECA directly extends a
loan to the exporter, often collateralized by the exporter’s pledge of his export
receivables. The bank or ECA may also purchase or discount the exporter’s
receivables with full, limited or no recourse against the supplier.
Français: Financement sous forme de Crédit fournisseur
Español: Financiamiento de crédito suministrador
Supply-or-pay contract:
A contract under which a supplier commits himself to supply a raw material,
product or service for a certain price and at a stated period, or to pay for an
alternative supply if he cannot provide it himself as agreed.
Français: Contrat de type "Fourni-ou-paie"
Español: Contrato de suministro o pago
Surety:
American bonds, guarantees and obligations such as performance sureties,
completion bonds etc.
Français: Garantie
Español: Surety
Surety credit:
A credit guaranteed by a bond issue.
Français: Crédit garanti
Español: Crédito de garantía
Sushi bonds:
A Eurobond issued by a Japanese corporation.
Français: Obligation Sushi
Español: Bono sushi
Swap:
In general, an arrangement whereby two parties lend to each other on different
terms, e.g. in different currencies, and/or at different interest rates (fixed versus
floating).
(1) In a foreign currency swap, two parties exchange on the Spot market (usually
at the prevailing spot rate) sums of money expressed in different currencies and
these sums are re-exchanged forward. Fixed interest rates are also calculated on
the swapped principal amounts. Foreign currency swaps are often used by
Central Banks to support the domestic currency, through the swap of the
domestic currency for a loan from another Central Bank.
(2) An interest rate swap is an exchange, between two parties, of the cash flows
from fixed rate as against floating rate investments, where the cash flows are
usually in the same currency and where there is no exchange ofprincipal.
Français: Swap
Español: Swap
Swaption:
An option on a swap.
Français: Swaption
Español: Swaption
SWIFT:
An acronym for The Society for Worldwide Interbank Financial
Telecommunication. This is a closed network providing secure global
communication between financial institutions in over 185 countries.
Français: SWIFT
Español: SWIFT
Switching:
See Countertrade.
Français: Switching
Español: Switching
Syndicate; consortium:
An association or group of individuals or companies which jointly carries out a
financial or industrial project, such as the underwriting of a new bond issue.
Français: Syndicat, Consortium
Español: Consorcio
Syndicated credit; Syndicated loan:
A credit or loan granted jointly by a group of banks, typically when the loan is
too large to be provided by a single bank (such as eurocredits). Syndicated loans
are managed by a lead bank which assesses the borrower's needs and tries to get
other banks to participate in the loan. The syndicate leader receives
a management fee.
Français: Crédit syndiqué, prêt syndiqué
Español: Crédito sindicado, préstamo sindicado