move down the credit curve

French translation: déplacés vers le bas de la courbe de crédit

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

English term or phrase:	move down the credit curve
French translation:	déplacés vers le bas de la courbe de crédit
Entered by:	Ana Vozone

15:24 Mar 14, 2016

English to French translations [PRO]
Bus/Financial - Insurance / directive Solvabilité 2

English term or phrase: move down the credit curve

Bonjour à tous,

Je donne le plus de contexte possible pour cette question qui porte sur le secteur des assurances et la directive Solvabilité 2 dont l'objectif est de garantir la solvabilité des assurances.

Solvency II also influences the asset side of the balance sheet.
All insurers hold large investment portfolios to back the promises that they have made to their customers.
Returns on these portfolios have traditionally provided a big chunk of their profits.
On the general insurance side of the business, where claims are unpredictable, companies tend to hold a lot in liquid assets.
In the life insurance industry, however, companies have a lot more flexibility over where to invest.
It is here that Solvency II has had the biggest impact as the insurers aim to move away from assets that carry high capital charges under the new rules, but at the same time avoid assets whose returns are either tiny or negative.
In the much larger bond portfolios, those insurers that have offered long-term guarantees have moved towards gilts, but these offer very small returns..
Others have therefore moved down the credit curve.

Merci d'avance pour votre aide si précieuse

Kévin Bacquet KudoZ activity Questions: 607 (7 open) (4 without valid answers) (15 closed without grading) Answers: 1463 France
Local time: 13:31

déplacés vers le bas de la courbe de crédit

Explanation:
Or
"fait un mouvement vers..."

https://www.google.pt/webhp?sourceid=chrome-instant&ion=1&es...

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Note added at 1 hr (2016-03-14 17:21:17 GMT)
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Encore un exemple:

investisseurs ont commencé à regarder vers le bas de la courbe de crédit asiatique mais ils n'ont toujours pas le courage de jeter ...

Selected response from:

Ana Vozone
Local time: 12:31

Grading comment

Merci bien !
4 KudoZ points were awarded for this answer

Summary of answers provided

ont donc investi dans des obligations à la maturité plus longue/au spread plus élevé

Francois Boye

déplacés vers le bas de la courbe de crédit

Ana Vozone

Summary of reference entries provided

Credit curve

Ana Vozone

Pour comprendre la signification de cette expression

Victor Santos

Discussion entries: 8

Francois Boye

United States

13:41 Mar 15, 2016

Response to Asker: The literal translation of the expression you are submitting for translation is self-evident for every person trained in economics (moving down a cost or learning curve is about reducing one's cost and/or increasing one's productivity, which impacts one's return).

As the literal translation is not transparent for everybody, I propose a translation that clarifies the expression 'moving down the credit curve'.

With the support of an attachment, I explain the relation between 'moving down the credit curve' and investing in bonds with longer maturity. Moreover, I explain the impact of longer maturity on wider or higher spreads.

IN my judgment, my translation is explicit, as opposed to the literal translation.

Ana Vozone

The original text

10:01 Mar 15, 2016

says:

but these offer ***very small returns***.
Others have ***therefore*** moved down the credit curve.

It seems clear that this has to do with quality of the credit, and not with maturities.

JMARTIN9

@VICTOR

07:40 Mar 15, 2016

Merci, mais pour cela il faudrait connaitre la phrase suivante et voir si elle apporte l'explication.

Ana Vozone

Lower credit quality,

23:52 Mar 14, 2016

higher risk but potentially higher returns.

However, if the author of the text chose to use "move down the credit curve" as opposed to "investing in lower credit quality", I think the translation should be along the same lines since there is a literal translation for the expression.

Victor Santos

France

@JMARTIN

21:08 Mar 14, 2016

Absolument. N'hésitez pas à proposer "formellement" une réponse.
Autre manière de formuler: se positionner sur des émetteurs [à la solvabilité plus incertaine] / [offrant moins de gages de solvabilité].

JMARTIN9

or investing in lower credit quality securities

17:27 Mar 14, 2016

https://books.google.fr/books?isbn=1428935096 -
While “moving down the credit curve” (that is, investing in lower credit quality securities)
L'idée est d'investir dans des titres de qualité de crédit inférieure.

JMARTIN9

or investing in lower credit quality securities

17:27 Mar 14, 2016

Kévin Bacquet

France

ASKER

Précision

15:25 Mar 14, 2016

Pardon : garantir la solvabilité des compagnies d'assurance.

Answers

1 hr confidence:

déplacés vers le bas de la courbe de crédit

Pour Y donné, cela correspond à une diminution de r à r' du taux d'intérêt, ce qui conduit à un déplacement vers le bas de la courbe LM (figure).
directeurs de l'ECB pour l'année 2005, il faudra. [...] s'attendre encore à un mouvement vers le bas de la courbe des taux EMU.

Ana Vozone
Local time: 12:31
Native speaker of:

Portuguese
PRO pts in category: 4

Grading comment

Merci bien !

12 hrs confidence:

had therefore moved down the credit curve ont donc investi dans des obligations à la maturité plus longue/au spread plus élevé

Explanation:
Moving down the credit curve = investing in bonds with longer maturity.

According to a normal yield curve, the longer the maturity, the higher the spread.

http://credittrading.blogspot.com/2009/01/credit-curves-what...

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Note added at 23 hrs (2016-03-15 14:34:34 GMT)
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The long maturity bonds are the opposite of the UK Treasury bills, called gilts. They provide higher yields because they maturities are longer.

Francois Boye
United States
Local time: 07:31
Native speaker of:

French
PRO pts in category: 8

Notes to answerer

Asker: Merci bien. Votre traduction est juste mais trop cibliste à mon goût. Surtout qu'en effet, le texte donne une explication dans vos termes plus loin. Il faut donc respecter le cheminement de la pensée car apparemment en anglais comme en français, cette histoire de courbe de crédit a besoin d'être explicitée...

Reference comments

1 hr

Reference: Credit curve

Reference information:
Credit Curves
Investors have different views about how the credit risk of a company will
change over time. This is manifested in the shape of the credit curve: the excess
yield over some benchmark interest rate of a credit as a function of the maturity
of the credit exposure.
http://www.investinginbonds.com/assets/files/LehmanCredDeriv...

La courbe formée par la jonction des points (Tk , Sˆ k )k=1,...,q est appelée
courbe de crédit ou term-structure des spreads de CDS
http://www.ressources-actuarielles.net/EXT/IA/sitesepia.nsf/...$FILE/SEPIA20120614_AC2.pdf?OpenElement

Ana Vozone
Native speaker of:

Portuguese
PRO pts in category: 4

5 hrs

Reference: Pour comprendre la signification de cette expression

Reference information:
"The fall in government and corporate bond yields has prompted investors to reach further down the credit curve to make ends meet. Investment grade fund managers have been looking increasingly at the better “junk” bonds, which has in turn pushed traditional high-yield investors down into even more lowly rated territory."
http://www.ft.com/intl/cms/s/0/60863d84-2292-11e2-8edf-00144...

---------------------
"Caution is needed when going down the credit curve

Demand rather than fundamentals has been driving down yields and encouraging investors to buy into lower quality paper."

http://www.investmentweek.co.uk/investment-week/news/1397385...

Victor Santos
France
Specializes in field
Native speaker of:

French,

Portuguese
PRO pts in category: 19

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move down the credit curve

French translation: déplacés vers le bas de la courbe de crédit

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