Off balance sheet finance and SONIA: Difference between pages

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imported>Doug Williamson
(Link with Bank of England webpage: Benchmarks.)
 
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Any form of finance that does not result in a finance liability appearing on a published balance sheet.
Sterling Overnight Index Average.


On double entry bookkeeping principles, the asset being financed cannot appear either.


Tracks actual average market sterling funding rates each day:
*for settlement that day
*where repayment is made on the following business day.


The effect of such financing and accounting methods is to show the entity's borrowings - and financial risk - at a lower level than they really are.


It is published by WMBA Ltd (part of European Venues and Intermediaries Association - EVIA) in London at 5pm each day.


==See also==


* [[Balance sheet]]
It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by EVIA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.
* [[Double entry]]
* [[Finance lease]]
* [[Gearing]]
* [[IAS 17]]
* [[IFRS 16]]
* [[Liabilities]]
* [[Off balance sheet]]
* [[Securitisation]]
* [[Securitisation special purpose vehicle]]


[[Category:Accounting,_tax_and_regulation]]
 
The Bank of England will become the administrator of a revised SONIA with effect from 23 April 2018.
 
Among other changes, SONIA will be broadened to include overnight unsecured transactions negotiated bilaterally as well as those arranged via brokers.
 
 
== See also ==
* [[Benchmark]]
* [[Euro Overnight Index Average ]]
* [[EURONIA]]
* [[European Venues and Intermediaries Association]]
* [[LIBOR]]
* [[Over night index average rate]]
* [[Overnight indexed swap]]
* [[SARON]]
* [[Sterling overnight index average]]
* [[TONAR]]
 
 
 
===Other links===
 
[http://www.bankofengland.co.uk/markets/benchmarks Bank of England: SONIA and other benchmarks]
 
[http://www.wmba.org.uk/pages/index.cfm?page_id=31 Wholesale Markets Brokers' Association (WMBA)]

Revision as of 20:57, 4 January 2018

Sterling Overnight Index Average.


Tracks actual average market sterling funding rates each day:

  • for settlement that day
  • where repayment is made on the following business day.


It is published by WMBA Ltd (part of European Venues and Intermediaries Association - EVIA) in London at 5pm each day.


It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by EVIA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.


The Bank of England will become the administrator of a revised SONIA with effect from 23 April 2018.

Among other changes, SONIA will be broadened to include overnight unsecured transactions negotiated bilaterally as well as those arranged via brokers.


See also


Other links

Bank of England: SONIA and other benchmarks

Wholesale Markets Brokers' Association (WMBA)