Term rate
From ACT Wiki
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.
