Term rate: Difference between revisions

Revision as of 15:37, 26 February 2020

Interest rates.

A term rate is an interest rate for a predetermined future term.

The term is usually a medium or longer-term one.

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 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.''