point de sensibilité

English translation: one percentage point of sensitivity

16:25 Aug 11, 2009
French to English translations [PRO]
Bus/Financial - Investment / Securities
French term or phrase: point de sensibilité
Part of a monthly report on portfolio transactions:
"Sur les taux, le contrat 2 ans allemand a été vendu pour 1 point de sensibilité environ, considérant qu'il y a une asymétrie à l'approche de 1.2%, avec une optique d'aller et retour systématique."
Lesley Sawyer
United Kingdom
Local time: 08:51
English translation:one percentage point of sensitivity
Explanation:
Not clear what it means, but this is more likely to be decoded as something meaningful by a knowledgeable reader than "sensitivity point". Hedging with interest-rate futures is all about managing the sensitivity to changes in interest rates (a.k.a. "duration", but francophones have an aversion to that loanword in French) of a fixed-income portfolio. 1 point of "sensitivity" is probably linked to the effect of a 100 basis point change in interest rates.
Selected response from:

rkillings
United States
Local time: 00:51
Grading comment
Thoughtful, informed answer. Thanks very much.
4 KudoZ points were awarded for this answer



Summary of answers provided
3one percentage point of sensitivity
rkillings
2sensitivity point
joehlindsay


  

Answers


8 hrs   confidence: Answerer confidence 2/5Answerer confidence 2/5
sensitivity point


Explanation:
I'm not at all sure, this doesn't make complete sense to me. I think they mean a percentage (sensitivity) point rather than a basis point; or a critical point on a graph, and it refers to sensitivity analysis for risk/return.

Sensitivity analysis is a technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions. The technique is used within specific boundaries that will depend on one or more input variables, such as the effect that changes in interest rates will have on a bond's price.

Sensitivity analysis is a way to predict the outcome of a decision if a situation turns out to be different compared to the key prediction(s).

Sensitivity analysis is very useful when attempting to determine the impact the actual outcome of a particular variable will have if it differs from what was previously assumed. By creating a given set of scenarios, the analyst can determine how changes in one variable(s) will impact the target variable.

For example, an analyst might create a financial model that will value a company's equity (the dependent variable) given the amount of earnings per share (an independent variable) the company reports at the end of the year and the company's price-to-earnings multiple (another independent variable) at that time. The analyst can create a table of predicted price-to-earnings multiples and a corresponding value of the company's equity based on different values for each of the independent variables.

I think there are two meanings for sensitivity point. One is the critical point where the predicted outcome changes, but here it may be a percentage point derived from the sensitivity analysis. The price of the portfolio in question is thus adjusted.

Please note how sensibilité/sensitivity is represented on the Crédit Agricole graphs in the link: caam.com/fra/home_doc&_idfic=59046

Sorry I can't do better.

joehlindsay
Local time: 02:51
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 22
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9 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
one percentage point of sensitivity


Explanation:
Not clear what it means, but this is more likely to be decoded as something meaningful by a knowledgeable reader than "sensitivity point". Hedging with interest-rate futures is all about managing the sensitivity to changes in interest rates (a.k.a. "duration", but francophones have an aversion to that loanword in French) of a fixed-income portfolio. 1 point of "sensitivity" is probably linked to the effect of a 100 basis point change in interest rates.

rkillings
United States
Local time: 00:51
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 131
Grading comment
Thoughtful, informed answer. Thanks very much.
Login to enter a peer comment (or grade)



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