BSBY: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
(Add link.) |
(Layout.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
''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 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. | :"[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." | :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.)'' | :''(Source - Haynes Boone - 30 November 2023.)'' | ||
| Line 26: | Line 26: | ||
* [[Bloomberg]] | * [[Bloomberg]] | ||
* [[Bloomberg Index Services Limited]] (BISL) | * [[Bloomberg Index Services Limited]] (BISL) | ||
* [[Credit sensitive rate]] (CSR) | |||
* [[Fallback]] | * [[Fallback]] | ||
* [[Risk-free rates]] (RFR) | * [[Risk-free rates]] (RFR) | ||
| Line 41: | Line 42: | ||
==Other | ==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] | ||
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
