BSBY

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

Other resources

• Future Cessation of the Bloomberg Short-Term Bank Yield Index (“BSBY”) - press release November 2023
• Out with the Old (LIBOR) and Out with the New (BSBY)? Another Rate Bites the Dust - Haynes Boone - 30 November 2023