Decoupling is when the performance of an asset class that has been correlated with other assets in the past no longer changes in line with expectations.
Decoupling can also refer to a discrepancy between the performance of a country’s investment market and the state of its core economy.
Investors may view the decoupling as an opportunity if they believe the old correlation pattern will return, but there is no guarantee that this will happen.
Many sustainable development economists also advocate decoupling economic growth from environmental pressures, that is, finding ways to achieve growth without exacerbating environmental impacts.
Relative decoupling refers to a decreasing correlation between two assets, while absolute decoupling means zero or negative correlation.
An increase refers to a positive change in an analyst’s view of the valuation of a particular security, based primarily on an improvement in that security’s fundamentals.
The Bank Note Swap Rate (BBSW) is a short-term interest rate used as a benchmark for valuing Australian dollar derivatives and securities, primarily floating rate bonds.
A basis point is a standard measure of interest rates and other percentages in finance.
– One basis point is equal to 1/100th of 1%, or 0.01% (and 0.0001 in decimal).
Bearer shares are unregistered equity securities owned by the owner of the physical shares documents. The issuing company pays dividends to holders of physical coupons.