The financial world is plagued by jargon and terms seemingly designed to confuse. This Jargon Buster aims to explain some of them. I am regularly updating this section with new explanations of jargon, so the next time you run across a word or term that bamboozles you please check back and see if I’ve covered it yet. You’re also welcome to e-mail me with new terms that you think merit a place in Jargon Buster.

Freshly busted financial jargon:

bordereau: A detailed statement, often including details of risks, accounts and documents

SWF / Sovereign Wealth Fund: a nation's pool of funds and assets built up from its surpluses. Often, though not exclusively, used by mineral rich countries such as Dubai, Abu Dhabi, Norway etc. to provide for their countries' future needs.

EFSF: European Financial Stability Facility - "EFSF’s mandate is to safeguard financial stability in Europe by providing financial assistance to euro area Member States," its website explains.

ESFS: European System of Financial Supervisors

RARORAC: Risk adjusted return on risk adjusted capital. A measure of profiiability used by banks in the context of Basel capital adequacy rules.

OEIC: Open-ended investment company - a form of mutual or collective investment fund or scheme

SPE / SPV: Special purpose entity / special purpose vehicle - a limited company set up for a specific narrow purpose, such as to own particular assets or to legally isolate certain activities from a parent company or private individual.