Easing cycle – This refers to a period during which a central bank reduces interest rates or takes other measures to increase the money supply in order to stimulate economic growth.
Fiscal tightening – This is the opposite of fiscal easing. It involves reducing government spending or increasing taxes to reduce a budget deficit and control inflation.
Net interest margin – This is a measure of the difference between the interest income generated by banks or financial institutions and the amount of interest paid out to their lenders, relative to the amount of their interest-earning assets.
Net debt to EBITDA ratio – This financial metric compares a company's net debt to its earnings before interest, taxes, depreciation, and amortisation (EBITDA). It is used as a proxy for a company’s ability to repay its debt.
Market capitalisation – This is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current share price by the total number of outstanding shares.
Operating margins – This is a measure of a company's profitability. It is calculated by dividing operating profit (earnings before interest and tax) by net sales and is expressed as a percentage.
Overweight/underweight – These terms are used in investment to describe the relative proportion of a particular asset in a portfolio compared to an index or benchmark. ‘Overweight’ means holding a relatively larger proportion, while ‘underweight’ means holding a relatively smaller proportion.
