Price value of a basis point and Re-equitisation: Difference between pages

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(PVBP/PV01). The expected or the actual money amount of the change in price of an instrument or portfolio, following a one basis point (0.01%) change in nominal annual yield (= 0.0001 as a decimal).
''Capital structure - equity''.


Calculated on an estimated basis from the modified duration as:
Re-equitisation means increasing the relative proportion of equity in the capital structure of a company.
PVBP = Modified duration x Price x 0.0001


PVBP can also be calculated via a full recalculation of the market value of the instrument or portfolio at each of the two yields (differing by 0.01%).  The PVBP calculated on this basis is then the difference between the two related market values.
Especially following reductions in the past.


The calculated PVBP will differ slightly, depending on the method of calculation.
PVBP also varies with the current yield for the instrument or portfolio under review.


Commonly shortened to PVBP or PV01.
:<span style="color:#4B0082">'''''DEBRA will contribute to re-equitisation'''''</span>


Also known as the Dollar value of a basis point (DVBP or DV01).
:"The green and digital transitions arising from the EU decision to move towards a climate neutral and digital economy will require large investments in new technologies and innovation that imply a need for capital.  


:In such a context, equity financing facilitates risky investments in breakthrough technologies.


== See also ==
:An allowance for equity financing would also contribute to the re-equitisation of companies.
* [[Basis point]]
* [[Modified duration]]


:Companies with a solid capital structure are less vulnerable to shocks, and more prone to make investments and take risks.
:This can positively affect competitiveness, growth and ultimately employment."
:''DEBRA - consultation - European Commission - Commission expert group Platform for Tax Good Governance - October 2021.''
==See also==
* [[Allowance]]
* [[Capital]]
* [[Capital adequacy]]
* [[Capital structure]]
* [[Capitalisation]]
* [[Corporate finance]]
* [[DEBRA]]
* [[Debt]]
* [[Debt equity ratio]]
* [[Debt for equity swap]]
* [[Digital economy]]
* [[Equity]]
* [[European Commission]]
* [[Tax]]
* [[Transition]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 09:43, 22 February 2022

Capital structure - equity.

Re-equitisation means increasing the relative proportion of equity in the capital structure of a company.

Especially following reductions in the past.


DEBRA will contribute to re-equitisation
"The green and digital transitions arising from the EU decision to move towards a climate neutral and digital economy will require large investments in new technologies and innovation that imply a need for capital.
In such a context, equity financing facilitates risky investments in breakthrough technologies.
An allowance for equity financing would also contribute to the re-equitisation of companies.
Companies with a solid capital structure are less vulnerable to shocks, and more prone to make investments and take risks.
This can positively affect competitiveness, growth and ultimately employment."
DEBRA - consultation - European Commission - Commission expert group Platform for Tax Good Governance - October 2021.


See also