We believe a glossary is key for any client trying to navigate through the range of complex terms and jargon in our industry.

Our most frequently defined terms are defined below but if there's something you think we should add, please contact us.


Index-linked bond

A debt instrument with principal and/or interest payments linked to the performance of an inflation index, for example the Retail Prices Index (RPI).

Inflation swap

A contractual agreement where one counterparty agrees to pay a fixed rate on a notional amount in exchange for a payment linked to realised inflation on a notional amount over the term of the contract from the other counterparty.

Initial margin

This is the returnable collateral that must be deposited by a futures market participant when initiating an open position. It is also required of writers of options.

Interest rate swap

A contractual agreement to exchange a stream of periodic payments between counterparties. The agreement defines the dates when the cash flows are to be exchanged and the way that they are calculated.

Issued share capital

The portion of a company’s authorised capital that has been issued by the company.