entire - Deutsche Bank Annual Report 2012

Deutsche Bank 05 – Supplementary Information 407
Financial Report 2010 Glossary
Subprime
Used as a term to categorize U.S. mortgages
representing loans with a higher expectation
of risk. In order to determine subprime industry
standards including FICO scores and
loan-to-value ratios are applied.
Swaps
In general: exchange of one payment flow
for another. Interest rate swap: exchange of
interest payment flows in the same currency
with different terms and conditions (e.g.
fixed or floating). Currency swap: exchange
of interest payment flows and principal
amounts in different currencies.
T
Target Definition
Target definition excludes significant gains
(such as gains from the sale of industrial
holdings, businesses or premises) or significant
charges (such as charges from
restructuring, goodwill impairment or litigation)
if they are not indicative of the future
performance of Deutsche Bank core businesses.
Trust Preferred Securities
Hybrid capital instruments characterized by
profit-related interest payments. Under
banking supervisory regulations they are
part of Tier 1 capital if interest payments are
not accumulated in case of losses (noncumulative
trust preferred securities) and if
the instruments do not have a stated maturity
date or if they are not redeemable at the
option of the holder. Otherwise they are
included in Tier 2 capital (for example cumulative
trust preferred securities).
V
Value-at-risk
For a given portfolio, the value-at-risk is
an estimate of the potential future loss (in
terms of market value) that, under normal
market conditions, will not be exceeded in
a defined period of time and with a defined
confidence level.
W
Wrapped Bond
Term for debt security insured or guaranteed
by a third party.