A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate. Parties to the contract choose a reference rate that neither party has power to manipulate.
Other articles related to "reference rate, rate, reference rates, rates":
... The Libor is widely used as a reference rate for many financial instruments in both financial markets and commercial fields ... There are three major classifications of interest rate fixings instruments, including standard interbank products, commercial field products, and hybrid ... Standard interbank products Forward rate agreements Interest rate futures, e.g ...
... Examples of reference rates for short term interest rates are Euribor - Euro Interbank Offered Rate LIBOR - London Interbank Offered Rate SIBOR - Singapore ...
Famous quotes containing the words rate and/or reference:
“Writing a book I have found to be like building a house. A man forms a plan, and collects materials. He thinks he has enough to raise a large and stately edifice; but after he has arranged, compacted and polished, his work turns out to be a very small performance. The authour however like the builder, knows how much labour his work has cost him; and therefore estimates it at a higher rate than other people think it deserves,”
—James Boswell (17401795)
“Indiana was really, I suppose, a Democratic State. It has always been put down in the book as a state that might be carried by a close and careful and perfect organization and a great deal of[from audience: soapMa reference to purchased votes, the word being followed by laughter].
I see reporters here, and therefore I will simply say that everybody showed a great deal of interest in the occasion, and distributed tracts and political documents all through the country.”
—Chester A. Arthur (18291886)