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enger notieren

English translation: spreads were tighter

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:enger notieren
English translation:spreads were tighter
Entered by: Natalie Wilcock
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19:46 Feb 14, 2005
German to English translations [PRO]
Bus/Financial - Finance (general) / Financial Markets
German term or phrase: enger notieren
Kurzfristig dürfte die Erleichterung über den Wegfall der diesbezüglichen Unsicherheit die Märkte freundlich beeinflussen.
Die Anleihen notierten heute am Vormittag um 10-15 Basispunkte enger.

Taken from a corporate bond update on a company that has agreed to pay compensation to its joint venture partner in order to get out of the joint venture.
Natalie Wilcock
Local time: 18:44
spreads were tighter
Explanation:
This means that the spread over the (risk-free) benchmark (usually a government bond with comparable maturity) has shrunk, reflecting the more benign risk assessment.

-> "Bonds were trading around 10 to 15 basis points tighter this morning."

HTH, Ralf

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Note added at 13 hrs 54 mins (2005-02-15 09:40:53 GMT)
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Added note regarding the concepts involved here:
The yield of corporate bond issues is generally broken down into the \'pure\' (risk-free) interest element (usually approximated using a benchmark government or sovereign bond) and the yield spread which reflects the issuer\'s higher risk compared to the \'risk-free\' benchmark. A \'tightening\' means that the yield premium is reduced (IOW the market requires less extra payoff for the extra risk taken) - conversely, if the view on risk deteriorates, spreads will widen.
Given the inverse yield/price relationship, the bonds in this example were actually trading higher (in price terms).
Selected response from:

Ralf Lemster
Germany
Local time: 18:44
Grading comment
Thanks Ralf. Regards, Natalie
3 KudoZ points were awarded for this answer

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Summary of answers provided
4 +2spreads were tighter
Ralf Lemster
4to be trading tighter / lesserEmilie Laferrière


  

Answers


22 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
spreads were tighter


Explanation:
This means that the spread over the (risk-free) benchmark (usually a government bond with comparable maturity) has shrunk, reflecting the more benign risk assessment.

-> "Bonds were trading around 10 to 15 basis points tighter this morning."

HTH, Ralf

--------------------------------------------------
Note added at 13 hrs 54 mins (2005-02-15 09:40:53 GMT)
--------------------------------------------------

Added note regarding the concepts involved here:
The yield of corporate bond issues is generally broken down into the \'pure\' (risk-free) interest element (usually approximated using a benchmark government or sovereign bond) and the yield spread which reflects the issuer\'s higher risk compared to the \'risk-free\' benchmark. A \'tightening\' means that the yield premium is reduced (IOW the market requires less extra payoff for the extra risk taken) - conversely, if the view on risk deteriorates, spreads will widen.
Given the inverse yield/price relationship, the bonds in this example were actually trading higher (in price terms).

Ralf Lemster
Germany
Local time: 18:44
Specializes in field
Native speaker of: German
PRO pts in category: 751
Grading comment
Thanks Ralf. Regards, Natalie

Peer comments on this answer (and responses from the answerer)
agree  Frosty
37 mins

agree  RobinB: But no doubt some people will object because you didn't translate Anleihen literally...
1 hr
  -> Yup... been there... (sigh)
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26 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
to be trading tighter / lesser


Explanation:
notieren: an der Börse / on a market (mentioned in the text): to be trading;
enger: tighter = by XXX basispoints less or tighter

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Note added at 14 hrs 13 mins (2005-02-15 10:00:21 GMT)
--------------------------------------------------

To Ralf (last, but not least?): about (2): Sure spreads can be tighter, but it is true that the text said that bonds were trading by xxx basispoints tighter (or lesser, if you prefer).
Bis bald ?

Emilie Laferrière
France
Local time: 18:44
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
neutral  Ralf Lemster: (1) True - the question is: *what* is trading "tighter", and compared to what? (2) Wrong - bonds cannot trade tighter - this refers to a tightening of the yield spread over the benchmark.
8 hrs
  -> "What": What: Die Anleihen (to be translated rather by "bonds" than by "borrowings")
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Changes made by editors
Apr 16, 2005 - Changes made by Ralf Lemster:
Field (specific)(none) » Finance (general)
Field (write-in)(none) » Financial Markets


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