Term SONIA reference rate: Difference between revisions
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* [[Term fixing]] | * [[Term fixing]] | ||
* [[Term rate]] | * [[Term rate]] | ||
* [[ | * [[Working Group on Sterling Risk-Free Reference Rates]] (RFRWG) | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 14:31, 27 April 2022
Interest rates - reference rates - forward-looking benchmarks - SONIA.
(TSRR).
Term SONIA refers to a forward-looking benchmark interest rate, based on the Sterling Overnight Index Average (SONIA), as published by the Bank of England.
- Term SONIA will have only limited application - UK RFRWG
- "The UK RFRWG has repeatedly emphasised their expectation that the bulk of the cash markets should transition to backward-looking RFRs and should not wait for term rates...
- The UK RFRWG believes term SONIA is likely to be appropriate only in limited instances where operational necessity precludes the use of a compounded in arrears RFR or another alternative rate."
- A practical guide to LIBOR transition - Slaughter and May - September 2020, p11
