Benchmark and Collateral: Difference between pages

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1. ''Comparative measure.''
1.  


A measure stated on a standardised basis, to enable comparison.
An asset provided as security for a debt.


For example, an effective annual rate.


2.


2. ''Standard of performance - quantitative.''
Security provided in respect of a financial transaction, such as a swap.  


A quantified standard of performance set by the market (such as stock market index) or by an institutional investor (such as an internally developed benchmark) against which investment performance, or other performance, can be managed and tracked.
Collateral is normally provided in the form of cash or readily marketable securities.
 
 
3. ''Standard of performance - qualitative.''
 
A standard of performance including less readily quantified measures, such as satisfaction.
 
 
4. ''Interest rate''
 
An officially published rate of interest, from which a rate of interest payable or receivable is calculated.
 
Historically, for example, LIBOR.
 
A related rate of interest payable might be LIBOR + 1%.
 
 
''The Financial Stability Board (FSB) recommended in 2014 that stakeholders should identify risk-free rates that might be used as alternatives to LIBOR.''
 
 
5. ''Market price''
 
A market price for a widely traded quality and quantity of a commodity, used as a reference price in a contract.
 
For example, the price per barrel of Brent crude oil.




== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[Caps]]
* [[Baseline]]
* [[Collateral transformation]]
* [[Base rate]]
* [[Credit support annex]]
* [[Benchmarking]]
* [[Derivative instrument]]
* [[Benchmarks Regulation]]
* [[Eligible collateral]]
* [[Climate benchmark]]
* [[Encumbrance]]
* [[Commodity]]
* [[Haircut]]
* [[Credit Benchmark]]
* [[ISDA Master Agreement]]
* [[Effective annual rate]]
* [[Liquidity insurance]]
* [[€STR]]
* [[Liquidity upgrade]]
* [[EURIBOR]]
* [[Repurchase agreement]]
* [[European Money Markets Institute]]
* [[Risk mitigation]]
* [[Fallback]]
* [[Secured debt]]
* [[Financial Stability Board]]
* [[Security]]
* [[Fixing]]
* [[Collateral agreement]]
* [[Good practice]]
* [[Bilateral repurchase agreement]]
* [[LIBOR]]
* [[Tri-party repurchase agreement]]
* [[Price fixing]]
* [[Unencumbered]]
* [[Rate fixing]]
* [[Risk-free rates]]
* [[Spread to Treasury/ Governments]]
* [[Stakeholder]]
* [[Sterling]]
 
 
===Other links===
 
[http://www.fca.org.uk/news/speeches/interest-rate-benchmark-reform-transition-world-without-libor A World without Libor - FCA speech - July 2018]
 
[[Media:ACT LMA Future of LIBOR Guide 0318.pdf| The future of LIBOR: what you need to know, ACT & LMA, March 2018]]
 
[[Media:Slaughter and May interest rate benchmarks.pdf| 2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May]]


[[Category:The_business_context]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Risk_frameworks]]
[[Category:Financial_products_and_markets]]

Revision as of 15:00, 14 August 2016

1.

An asset provided as security for a debt.


2.

Security provided in respect of a financial transaction, such as a swap.

Collateral is normally provided in the form of cash or readily marketable securities.


See also

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