arbitrage entre émetteurs comparables sur un même point de courbe

English translation: arbitrage between comparable issuers on the same point of the curve

12:49 Dec 8, 2020
French to English translations [PRO]
Bus/Financial - Finance (general)
French term or phrase: arbitrage entre émetteurs comparables sur un même point de courbe
The following is an extract from a newsletter from the French asset management company Palatine AM. They are discussing their short-term funds, which consist of bonds if I am not mistaken.
"À l'intérieur de chaque tranche, dans un univers restreint à des émetteurs de qualité, notre gestion est dynamique et active. Elle repose sur l'arbitrage des points de courbe les plus intéressants pour un émetteur donné et sur l'arbitrage entre émetteurs comparables sur un même point de courbe."
Kalle Jelen (X)
Switzerland
Local time: 10:49
English translation:arbitrage between comparable issuers on the same point of the curve
Explanation:
Don't ask me to explain this in detail, because I have only a rough idea of what it means. I assume the curve refers to bond yields.
http://en.m.wikipedia.org/wiki/Arbitrage
Selected response from:

philgoddard
United States
Grading comment
This was a very difficult source text and the jury is still out as far as I am concerned, although I found your proposals helpful.
1 KudoZ points were awarded for this answer



Summary of answers provided
4arbitrage between comparable issuers on the same point of the curve
philgoddard
4arbitrage among comparable bond issuers at the same point of the yield curve
Francois Boye
3arbitration among comparable issuers on a single turning point
Lisa Rosengard


Discussion entries: 7





  

Answers


2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
arbitrage between comparable issuers on the same point of the curve


Explanation:
Don't ask me to explain this in detail, because I have only a rough idea of what it means. I assume the curve refers to bond yields.
http://en.m.wikipedia.org/wiki/Arbitrage

philgoddard
United States
Specializes in field
Native speaker of: English
PRO pts in category: 253
Grading comment
This was a very difficult source text and the jury is still out as far as I am concerned, although I found your proposals helpful.
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2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
arbitrage among comparable bond issuers at the same point of the yield curve


Explanation:
arbitrage = taking advantage of the best offer by comparing markets, products and bond issuers with one another

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Note added at 2 days 9 hrs (2020-12-10 22:37:13 GMT)
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Disregard the considerations in the explanation section and add the following:

the comparable bond issuers (on a point of the yield curve) issue bonds with the same value. Why? Because their bonds have the same profile of cash payments over time given the same discount rate.

As the result, the pricing of those comparable issuers' bonds should be the same in all financial markets. If not, there are opportunities to arbitrage, i.e., to buy cheap bonds in under-evaluating markets and selling them in over-evaluating markets.

Francois Boye
United States
Local time: 04:49
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 305
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1 day 7 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
arbitration among comparable issuers on a single turning point


Explanation:
Arbitration is mediation between two or more parties. The person who mediates would normally be accepted or chosen by the parties involved. The issuers could also be considered as 'transmitters'. They're probably those who send out communications.

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Note added at 9 days (2020-12-17 18:01:18 GMT) Post-grading
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www.thefreedictionary.com/arbitration

"Arbitrage is the simultaneous purchase and sale of equivalent assets, or of the same asset in multiple markets in order to exploit a temporary discrepancy in prices."
"Arbitration is the process by which parties submit their differences to the judgement of an impartial person or group appointed by mutual consent or statutory provision."

("De l'arbitrage est l'achât simultané et la vente des actifs équivalents du même actif dans beaucoup de marchés, pour profiter d'un écart temporaire dans des prix."
"De l'arbitrage est le procès par lequel les partis impliqués soumettent leurs divergences au jugement d'une personne impartielle ou d'un groupe nominé par un consentement mutuel ou par disposition légale.")

Lisa Rosengard
United Kingdom
Local time: 09:49
Works in field
Native speaker of: English

Peer comments on this answer (and responses from the answerer)
neutral  Francois Boye: Read my comments in the discussion section. The correct word is 'arbitrage'
2 mins

neutral  Steve Robbie: Agree with François, except that the right word is neither arbitration nor arbitrage!
17 hrs
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