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 measures the average yields at which systemically important banks access USD unsecured wholesale funding.  
BSBY measured the average yields at which systemically important banks access USD unsecured wholesale funding.  


It is a forward-looking term rate and reflects those banks’ funding costs for maturities of overnight, 1, 3, 6 & 12 months.
It was a forward-looking term rate and reflected those banks’ funding costs for maturities of overnight, 1, 3, 6 & 12 months.




BSBY is administered by Bloomberg Index Services Limited.
BSBY was administered by Bloomberg Index Services Limited.


Bloomberg Index Services Limited (BSL) has announced that it will discontinue BSBY rates on 15 November 2024.


"[the] announcement 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. 
:<span style="color:#4B0082">'''''No recommendations for fallback rate'''''</span>


Of particular note for market participants (and especially for legal practitioners) is that BSL will not be recommending a fallback replacement rate for BSBY."
:"[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.


''(Source - Haynes Boone - 30 November 2023.)''
: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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* [[Bloomberg]]
* [[Bloomberg]]
* [[Bloomberg Index Services Limited]]  (BISL)
* [[Bloomberg Index Services Limited]]  (BISL)
* [[Credit sensitive rate]]  (CSR)
* [[Fallback]]
* [[Risk-free rates]] (RFR)
* [[Risk-free rates]] (RFR)
* [[SOFR term rate]]
* [[SOFR term rate]]
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==Other resource==
==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]
*[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:Financial_products_and_markets]]
[[Category:Identify_and_assess_risks]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

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


Other resources

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