Term rate: Difference between revisions
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The term is usually a medium or longer-term one. | The term is usually a medium or longer-term one. | ||
:<span style="color:#4B0082">'''''Term RFRs are required'''''</span> | |||
:"Currently, all RFRs are overnight rates only, although some market participants and products require or desire term rates. | |||
:According to the milestones and timelines set out by the RFR working group, a term SONIA rate will be launched in the second half of 2019. | |||
:There are similar plans in place for other currency RFRs, albeit with different time frames. | |||
:An alternative to using a term SONIA could be the increased use of the Bank of England Base Rate (or currency equivalents) in certain products." | |||
:''The Treasurer magazine, Cash Management Edition April 2019 p29, Lloyds Bank.'' | |||
== See also == | == See also == | ||
* [[Bank of England Base Rate]] | |||
* [[Benchmark]] | * [[Benchmark]] | ||
* [[Currency]] | |||
* [[RFR]] | |||
* [[SONIA]] | |||
* [[Term]] | * [[Term]] | ||
* [[Term fixing]] | * [[Term fixing]] | ||
* [[The Working Group on Sterling Risk-Free Reference Rates]] | |||
[[Category:Corporate_financial_management]] | [[Category:Corporate_financial_management]] | ||
Revision as of 15:57, 19 April 2019
Interest rates.
A term rate is an interest rate for a predetermined future term.
The term is usually a medium or longer-term one.
- Term RFRs are required
- "Currently, all RFRs are overnight rates only, although some market participants and products require or desire term rates.
- According to the milestones and timelines set out by the RFR working group, a term SONIA rate will be launched in the second half of 2019.
- There are similar plans in place for other currency RFRs, albeit with different time frames.
- An alternative to using a term SONIA could be the increased use of the Bank of England Base Rate (or currency equivalents) in certain products."
- The Treasurer magazine, Cash Management Edition April 2019 p29, Lloyds Bank.
