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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] |
LIBOR
The London Inter-Bank Offered Rate (Libor ) was an interest rate average calculated from estimates submitted by the leading Bank, banks in London. Each bank estimated what it would be charged were it to borrow from other banks. It was the primary benchmark, along with the Euribor, for short-term interest rates around the world. Libor was phased out at the end of 2021, with market participants encouraged to transition to risk-free interest rates such as SOFR and SARON. LIBOR was discontinued in the summer of 2023. The last rates were published on 30 June 2023 before 12:00 pm UK time. The 1 month, 3 month, 6 month, and 12 month Secured Overnight Financing Rate (SOFR) is its replacement. In July 2023, the International Organization of Securities Commissions (IOSCO) said four unnamed United States dollar, dollar-denominated alternatives to LIBOR, known as "credit-sensitive rates", had "varying degrees of vulnerability" that might appear during times of market stress. Libor rates w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Euro Short-term Rate
The euro (symbol: €; currency code: EUR) is the official currency of 20 of the member states of the European Union. This group of states is officially known as the euro area or, more commonly, the eurozone. The euro is divided into 100 euro cents. The currency is also used officially by the institutions of the European Union, by four European microstates that are not EU members, the British Overseas Territory of Akrotiri and Dhekelia, as well as unilaterally by Montenegro and Kosovo. Outside Europe, a number of special territories of EU members also use the euro as their currency. The euro is used by 350 million people in Europe and additionally, over 200 million people worldwide use currencies pegged to the euro. It is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar. with more than €1.3 trillion in circulation, the euro has one of the highest combined values of banknotes and coi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
HIBOR
Hong Kong Inter-bank Offered Rate, (or HIBOR, Chinese: 香港銀行同業拆息), 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 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
MIBOR (Mumbai Inter-Bank Offer Rate)
MIBOR (Mumbai Interbank Outright Rate) is the overnight interest rate or reference rate based on the averaged interest rates at which Indian banks borrow unsecured funds from counterparties in the Indian rupee wholesale money market (or interbank market). The rate was originally published by the ''Fixed Income Money Market and Derivative Association of India'' (FIMMDA) and the National Stock Exchange of India (NSE). This was moved to a dedicated organisation, ''Financial Benchmarks India Private Ltd'' (FBIL) in 2015 which is jointly owned by FIMMDA, the Foreign Exchange Dealers’ Association of India (FEDAI) and the Indian Banks' Association (IBA). The rate is based on similar rates in London such as Libor and Euribor. The MIBOR is used as a bench mark rate for majority of financial derivative deals struck for interest rate swaps, forward rate agreements, Floating Rate Debentures and term deposits in India. The rate is fixed on the basis of volume based weighted average of trade ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
SIBOR
SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to lend ''unsecured'' funds to other banks in the Singapore wholesale money market (or interbank market). It is similar to the widely used LIBOR (London Interbank Offered Rate), and Euribor (Euro Interbank Offered Rate). Using SIBOR is more common in the Asian region and set by the Association of Banks in Singapore (ABS). SIBOR comes in 1-, 3-, 6-, or 12-month tenure. At the end of the tenure, the borrowing bank returns the borrowed fund to the lending bank. The 3-month SIBOR is the most popular rate that loans are pegged to and has been hovering below around 1% in the past few years. Many floating rate mortgages in the country are pegged to SIBOR due to its transparency. Alternatives to SIBOR include SOR, Fixed-rate mortgages, Combos (Combination of SIBOR and SOR). Although they may be higher or lower than SIBOR at any point of time, they usually move ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
TONAR
Tokyo Overnight Average Rate (TONA rate or TONAR) or Japanese Yen Uncollateralized Overnight Call Rate () 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 Frédéric, Nussbaum, Louis Frédéri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
