Reference Rate
A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate. Parties to the contract choose a reference rate that neither party has power to manipulate. Examples of use The most common use of reference rates is that of short-term interest rates such as LIBOR in floating rate notes, loans, swaps, short-term interest rate futures contracts, etc. The rates are calculated by an independent organisation, such as the British Bankers Association (BBA) as the average of the rates quoted by a large panel of banks, to ensure independence. Another example is that of swap reference rates for constant maturity swaps. The ISDAfix rates used are calculated daily for an independent organisation, the International Swaps and Derivatives Association, from quotes from a large pane ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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LIBOR
The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is usually abbreviated to Libor () or LIBOR, or more officially to ICE LIBOR (for Intercontinental Exchange LIBOR). It was formerly known as BBA Libor (for British Bankers' Association Libor or the trademark bba libor) before the responsibility for the administration was transferred to Intercontinental Exchange. It is the primary benchmark, along with the Euribor, for short-term interest rates around the world. Libor was phased out at the end of 2021, and market participants are being encouraged to transition to risk-free interest rates. As of late 2022, parts of it have been discontinued, and the rest is scheduled to end within 2023; the Secured Overnight Financing Rate (SOFR) is its replacement. Libor rates are calculated for five currenci ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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€STR
Euro short-term rate (€STR) is a reference rate for the currency euro. The €STR is calculated by the European Central Bank (ECB) and is based on the money market statistical reporting of the Eurosystem. The working group on euro risk-free rates has recommended €STR as a replacement for the EMMI Euro Overnight Index Average ( EONIA) as the Euro risk-free rate for all products and contracts. History 20 September 2017: ECB's Governing Council has decided to develop a euro short-term rate based on data collected by the Eurosystem for money market statistical purposes. 13 September 2018: The ''working group on euro risk-free rates'' recommends to replace the EONIA with the euro short-term rate. 12 March 2019: The ECB decided to use the acronym “€STR“. 2 October 2019: Start publishing the rate. Characteristics Characteristics of the €STR: * The €STR is published by the ECB. * It is based on the unsecured market segment. The ECB developed an unsecured rate, because it ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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HIBOR
Hong Kong Inter-bank Offered Rate, (or HIBOR, Chinese: 香港銀行åŒæ¥æ‹†æ¯), is the annualized rate charged for inter-bank lending on Hong Kong Dollar (HKD) denominated instruments, for a specified period ranging from overnight to one year. It is calculated daily at 11:00 a.m. local time based on quotations from 20 banks designated by the Hong Kong Association of Banks (HKAB). On 24 June 2013, an additional fixing was launched for off-shore Chinese renminbi (CNH), designated as CNH HIBOR. Definition In Hong Kong, HIBOR is officially called the "Hong Kong Dollar Interest Settlement Rates". It is defined in the Guide to Hong Kong Monetary, Banking and Financial Terms as "The rate of interest offered on Hong Kong dollar loans by banks in the interbank market for a specified period ranging from overnight to one year." HIBOR is fixed by the Hong Kong Association of Banks (HKAB) by reference to market rates for HKD deposits in the Hong Kong interbank market. These fixings are u ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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MIBOR (Mumbai Inter-Bank Offer Rate)
The MIBOR (Mumbai Inter-Bank Offer Rate) is a financial instrument. The Committee for the Development of the Debt Market that had studied and recommended the modalities for the development for a benchmark rate for the call money market. Accordingly, NSE had developed and launched the NSE Mumbai Inter-bank Bid Rate (MIBID) and NSE Mumbai Inter-bank Offer Rate (MIBOR) for the overnight money market on June 15, 1998. The success of the Overnight NSE MIBID MIBOR encouraged the Exchange to develop a benchmark rate for the term money market. NSE launched the 14-day NSE MIBID MIBOR on November 10, 1998, and the longer term money market benchmark rates for 1 month and 3 months on December 1, 1998. Further, the exchange introduced a 3 Day FIMMDA-NSE MIBID-MIBOR on all Fridays with effect from June 6, 2008, in addition to existing overnight rate. The MIBID/MIBOR rate is used as a bench mark rate for majority of deals struck for Interest Rate Swaps, Forward Rate Agreements, Floating Rate Deb ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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STIBOR
Stockholm Interbank Offered Rate (or STIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Swedish wholesale money market (or interbank market). STIBOR is the average (with the exception of the highest and lowest quotes) of the interest rates listed at 11 a.m. See also * Euribor *Leverage (finance) *Margin (finance) In finance, margin is the collateral that a holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty. This risk ... External links Swedish Financial Benchmark Facility (SFBF) - the administrator of STIBOR Reference rates Finance in Sweden {{Sweden-stub ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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SIBOR
SIBOR stands for Singapore Interbank Offered Rate '''' 25 July 2012 and is a daily based on the at which s offer to lend ''unsecured'' funds to other banks in the wholesale [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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TONAR
Tokyo Overnight Average Rate (TONA rate or TONAR) or Japanese Yen Uncollateralized Overnight Call Rate ( ja, ç„¡æ‹…ä¿ã‚³ãƒ¼ãƒ«O/N物レート) is an unsecured interbank overnight interest rate and reference rate for Japanese yen. Mutan rate and TONA rate are the same things. History Japanese yen uncollateralized overnight call market started in July 1985. Since December 28, 2016, the Bank of Japan has recommended the TONA rate as the preferred Japanese yen risk-free reference rate. TONA rate is recommended as a replacement for Japanese yen LIBOR, which was phased out at the end of 2021, and Euroyen TIBOR, which will be terminated at the end of 2024. Target rates TONA Compounded Benchmarks ; TONA Averages : TONA Averages are derived from the daily compounded TONA rate. The terms are 30day, 90days, and 180 days. ; TONA Index : Assets when 100 was invested in TONA on June 14, 2017. References External links - Bank of Japan The is the central bank of Japan.Louis F ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |