BSBY: Difference between revisions
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''Interest rates - reference rates - forward-looking benchmarks - USD - SOFR''. | ''Interest rates - reference rates - forward-looking benchmarks - USD - SOFR''. | ||
Abbreviation for Bloomberg Short-Term Bank Yield Index. | Abbreviation for the former Bloomberg Short-Term Bank Yield Index. | ||
BSBY | BSBY measured the average yields at which systemically important banks access USD unsecured wholesale funding. | ||
It | It was a forward-looking term rate and reflected those banks’ funding costs for maturities of overnight, 1, 3, 6 & 12 months. | ||
BSBY | BSBY was administered by Bloomberg Index Services Limited. | ||
:<span style="color:#4B0082">'''''No recommendations for fallback rate'''''</span> | |||
:"[the] announcement [of discontinuance] comes following BSL’s consultation with the BSBY Oversight Committee and the BSL board of directors. The consultation cites BSBY’s limited use within financial products and a projection that its use is unlikely to increase significantly in the future as the determining factors for the decision. | |||
:Of particular note for market participants (and especially for legal practitioners) is that BSL will not be recommending a fallback replacement rate for BSBY." | |||
:''(Source - Haynes Boone - 30 November 2023.)'' | |||
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* [[Benchmark]] | * [[Benchmark]] | ||
* [[Bloomberg]] | * [[Bloomberg]] | ||
* [[Bloomberg Index Services Limited]] (BISL) | |||
* [[Credit sensitive rate]] (CSR) | |||
* [[Fallback]] | |||
* [[Risk-free rates]] (RFR) | * [[Risk-free rates]] (RFR) | ||
* [[SOFR term rate]] | * [[SOFR term rate]] | ||
| Line 24: | Line 36: | ||
* [[Term rate]] | * [[Term rate]] | ||
* [[Term SONIA reference rate]] | * [[Term SONIA reference rate]] | ||
* [[Unsecured]] | * [[Unsecured]] | ||
* [[Wholesale]] | * [[Wholesale]] | ||
* [[Working Group on Sterling Risk-Free Reference Rates]] (RFRWG) | |||
* [[Yield]] | * [[Yield]] | ||
==Other resources== | |||
*[https://assets.bbhub.io/professional/sites/10/BSBY-Future-Cessation-Announcement-.pdf Future Cessation of the Bloomberg Short-Term Bank Yield Index (“BSBY”) - press release November 2023] | |||
*[https://www.haynesboone.com/news/alerts/out-with-the-old-libor-and-out-with-the-new-bsby--another-rate-bites-the-dust Out with the Old (LIBOR) and Out with the New (BSBY)? Another Rate Bites the Dust - Haynes Boone - 30 November 2023] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category: | [[Category:Financial_products_and_markets]] | ||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Investment]] | [[Category:Investment]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_reporting]] | |||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category: | [[Category:The_business_context]] | ||
Latest revision as of 01:15, 16 November 2024
Interest rates - reference rates - forward-looking benchmarks - USD - SOFR.
Abbreviation for the former Bloomberg Short-Term Bank Yield Index.
BSBY measured the average yields at which systemically important banks access USD unsecured wholesale funding.
It was a forward-looking term rate and reflected those banks’ funding costs for maturities of overnight, 1, 3, 6 & 12 months.
BSBY was administered by Bloomberg Index Services Limited.
- No recommendations for fallback rate
- "[the] announcement [of discontinuance] comes following BSL’s consultation with the BSBY Oversight Committee and the BSL board of directors. The consultation cites BSBY’s limited use within financial products and a projection that its use is unlikely to increase significantly in the future as the determining factors for the decision.
- Of particular note for market participants (and especially for legal practitioners) is that BSL will not be recommending a fallback replacement rate for BSBY."
- (Source - Haynes Boone - 30 November 2023.)
See also
- Bank of England
- Bank of England Base Rate
- Benchmark
- Bloomberg
- Bloomberg Index Services Limited (BISL)
- Credit sensitive rate (CSR)
- Fallback
- Risk-free rates (RFR)
- SOFR term rate
- SONIA
- Systemically Important Financial Institution
- Term
- Term fixing
- Term rate
- Term SONIA reference rate
- Unsecured
- Wholesale
- Working Group on Sterling Risk-Free Reference Rates (RFRWG)
- Yield
