Glossary
Fixed Income Glossary: terms and definitions relevant to fixed income investment.
ABS – See Asset backed security
Accrued interest – Interest accumulated but not yet paid on a security since the previous coupon payment.
ADI – See Authorised Deposit taking Institution
AFMA – See Australian Financial Markets Association
AOFM – See Australian Office of Financial Management
APRA – See Australian Prudential Regulation Authority
ASIC – See Australian Securities and Investments Commission
Asset backed security (ABS) – A security with income payment derived from and collateralised by a specified pool of underlying assets.
ASX – See Australian Stock Exchange
Ask price – The price at which a broker will sell a security.
ATO – Australian Taxation Office
AUD – Australian Dollar
Austraclear (also known as Exigo) – An electronic system owned and managed by the Australian Stock Exchange (ASX) for the registry and settlement of debt securities.
Australian Financial Markets Association (AFMA) – Formed in 1986 and with over 110 members, AFMA is the leading industry association for promoting efficiency, integrity, and professionalism in Australia’s financial markets.
Australian Office of Financial Management (AOFM) – The agency responsible for management of the Australian Government’s debt portfolio through issuance of Australian Government Securities, management of the Australian Government’s cash balance in the Official Public Account, and any investment in financial assets arising from these activities or as a result of any specific policy mandate from the Australian Government.
Australian Prudential Regulation Authority (APRA) – Established in 1998, APRA is the prudential regulator of the Australian financial services industry. APRA oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies, and most of the superannuation industry. APRA is funded largely by the industries that it supervises.
Australian Securities and Investments Commission (ASIC) – An independent Commonwealth Government body , ASIC is Australia’s corporate, markets and financial services regulator. ASIC contributes to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair and transparent , supported by confident and informed investors and consumers. ASIC is set up under and administer the Australian Securities and Investments Commission Act 2001 (ASIC Act), and carries out most of the work under the Corporations Act 2001 (Corporations Act).
Australian Stock Exchange (ASX) – One of the world’s leading financial market exchanges, offering a full suite of services, including listings, trading, clearing and settlement, across a comprehensive range of asset classes.
Authorised Deposit-taking Institution (ADI) – A corporation authorised under the Banking Act 1959. ADIs include banks, building societies and credit unions. All ADIs are subject to the same prudential standards but the use of the names “bank”, “building society” and “credit union” is subject to corporations meeting certain criteria.”