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Benchmark interest rate

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Benchmark Interest Rate
The benchmark interest rate is the lowest interest rate that an investor will accept for a non-Treasury investment.

 


Benchmark Interest Rate
Benchmark Interest Rate definition :
Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security.

Benchmark interest rate
Also called the base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security.

Benchmark Interest Rate
The minimum interest rate investors will demand for investing in a non-Treasury security. Also called the base interest rate.

A benchmark interest rate quoted and dispersed by Reuters Information Service. The BBSY is typically used by financial institutions or corporations engaging in interest rate swaps and related transactions.

The benchmark interest rate or level such a US Prime or LIBOR.
Basis Point (bp):
One hundred bp equals 1 percentage point.

Related: Benchmark interest rate.
Base market value
A group of securities, average market price at a specific time. Used for the purpose of indexing.
Base period ...

Base interest rate Related: Benchmark interest rate. Base market value The average market price of a group of securities at a specific time. Used for the purpose of indexing.

Reference rate A benchmark interest rate (such as LIBOR) used to specify conditions of an interest rate swap or an interest rate agreement. Refinancing An extension and/or increase in amount of existing debt.

Base interest rate Related: Benchmark interest rate. Base probability of loss The probability of not achieving a portfolio expected return. Related: Value at risk.

benchmark interest rate The base interest rate is the minimum required rate of return acceptable to... benchmark risk A collective measure of the various risks related to the potential for the returns... benchmarking See benchmark.

Floating Rate Bond A debt security whose COUPON RATE is periodically adjusted upwards or downwards, usually within a specified band, on the basis of a benchmark interest rate or an index.

The tools at its disposal include modifying benchmark interest rates (such as the Fed funds target and the discount rate in the US), conducting money market operations (which influence short-term interest rates), ...

Bank Bill Swap Bid Rate - BBSY - A benchmark interest rate quoted and dispersed by Reuters Information Service. The BBSY is typically used by financial institutions or corporations engaging in interest rate swaps and related transactions.

A variable rate security whose coupon rate increases as a benchmark interest rate declines.
In-house processing float
Refers to the time it takes the receiver of a check to process the payment and
deposit it in a bank for collection.

BASE INTEREST RATE - Related: Benchmark interest rate.
BASE LINE - One of a set of imaginary lines running east and west used by surveyors for reference in lo...

The rate of interest paid on overnight Fed Funds, the Fed Funds rate, is a key money market interest rate, and is the benchmark interest rate for other short-term credit arrangements.

A variable rate security whose coupon rate increases as a benchmark interest rate declines.
Inverted market
A futures market in which the nearer months are selling at price premiums to the more distant months. Related: premium.

The central bank targets annual inflation of 2%, within a tolerance band of plus or minus one percentage point. In February 2009, the central bank trimmed its benchmark interest rate from 6.5% to 6.

An interest rate, for instance on a loan or a bond issue, which fluctuates during the life of the loan or bond issue. This fluctuation is usually based on a benchmark interest rate, such as the Prime Rate or LIBOR in the case of international credit.

Inverse floating rate note
A variable rate security whose coupon rate increases as a benchmark interest rate declines.

BBSY Refers to a screen (i.e., a page name) on the Reuters Monitor System that shows benchmark interest rates used to price variable rate loans
BCA Basic Credit Approval
B/E Bill of Exchange ...

See also: Banks, Yield curve, Interest rate swap, Funding, Net present value

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