A separate central or local government entity established under public law and which has neither an industrial nor a commercial object.

The procedure adopted for issuing government securities which allows the purchaser to offer a price and therefore set a bid rate in a sealed bid auction; the participants thus not knowing each other bids.

The administrative department of a financial institution. It monitors market transactions and makes sure they comply with regulations. (also see Front Office)

One basis point is 0.01% of the nominal value of an instrument or contract.

See French treasury bonds

A medium-term negotiable debt instrument having a life of one year or more.

A negotiable debt security issued by a government or a limited liability company.

A loan that covers the period between two syndicated loans.

Short-term debt instruments with maturities ranging from 1 day to seven years issued in minimum amounts of 150,000 euros. Their rates are freely negotiable upon issuance and issuance programmes are rated by credit rating agencies.

A commission established under the Act of January 24, 1984 to exercise prudential control over providers of investment services and impose disciplinary sanctions when necessary. It is chaired by the Governor of the Bank of France.

The ratio of capital over commitments (i.e. assets weighted to account for the risk of default). Also known as the solvency ratio, it constitutes a prudential constraint on financial institutions. With a risk weighting of 0%, CADES is considered to have zero issuance risk. Bank bond issues, for example, have a risk weighting of 20%.

Established by the Act of 24/01/1984, this committee is chaired by the Minister of the Economy and establishes prudential and other rules for financial institutions.

Contract to deliver an asset at a future date and at a price currently agreed. Used to hedge against foreign exchange or interest risk.

Commonly called “government bonds", French treasury bonds are used to finance the State’s long-term requirements, as their maturities generally exceed five years.

The department of a financial institution that is directly involved in trading and placing orders on a market. (also see Back Office)

An order or edict issued by the government (under article 37 of the constitution) at the request of Parliament (authorised to issue orders under article 38 of the constitution).

A type of bond issued by the French Government since 1985, notably to finance government debt. It is so named because each issue represents a new tranche of a listed security to which it is assimilated. OATs may have fixed or floating interest rates, and maturities ranging from 5 to 30 years.

These are private companies that evaluate the credit quality of issues by assigning them ratings, based on such criteria as the issuer’s financial results, its management team, the guarantees offered, etc. The major rating agencies recognised in France are FITCH IBCA, Moody's and Standard & Poor's.

A type of budget act instituted with the 1996 social security reform, to reduce social security account deficits.

For CADES, the spread is the difference between the interest rate on CADES securities issued in France and the rate applied to OAT (government bond) issues.

A loan that is underwritten (i.e. guaranteed) by two or more banks. If a loan is issued in several tranches several groups of banks may be involved.

A government department charged with managing public finances and keeping the economy's main monetary and financial accounts in balance, through cash transactions, accounting procedures, and the supervision of funding and economic and financial stimulus measures.

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