Interest rates

KBRA Analytics Releases The Bank Treasury Newsletter, the Bank Treasury Chart Deck, and Bank Talk: The After-Show

Retrieved on: 
Wednesday, March 24, 2021
Banking, Professional services, Insurance, Finance, Money, Interest rates, Repurchase agreement, SOFR, Yield curve, HM Treasury, Bond, Economy, Economics

KBRA Analytics releases this months edition of The Bank Treasury Newsletter, the Bank Treasury Chart Deck, and Bank Talk: The After-Show.

Key Points: 
  • KBRA Analytics releases this months edition of The Bank Treasury Newsletter, the Bank Treasury Chart Deck, and Bank Talk: The After-Show.
  • This months newsletter, Bank Treasurers Masked Up and Ready to Buy Bonds, discusses the meteoric rise in the 10-year Treasury yield, which has steepened the yield curve this quarter.
  • Signaling the stress in Treasury markets this month, dealers reported that 10-year Treasury repo specials were trading as low as minus 1.9%, offering context for SOFR at 1 bp.
  • Despite the growing balance, bank treasurers are optimistic that the stimulus will encourage lending, even before the present surge in deposits begins to recede.

Credit Education Month A Good Time to Review Payment Options

Retrieved on: 
Tuesday, March 23, 2021
Money, Finance, Economy, Personal finance, Credit, Credit card, Credit score, Line of credit, Interest rates, Credit history, Credit card interest

Many turn to credit cards, but depending on an individual's credit score and ability to pay current balances, other options may offer a better alternative.

Key Points: 
  • Many turn to credit cards, but depending on an individual's credit score and ability to pay current balances, other options may offer a better alternative.
  • Prime rate credit cards offer low interest rates, rewards points, cash back and other perks.
  • Lines of credit for subprime borrowers, however, often come with a steep annual percentage rate that accrues each month.
  • Consumers are able to defer using cash or credit, typically between a few weeks to six months.

ECB starts publishing compounded euro short-term rate (€STR) average rates on 15 April 2021

Retrieved on: 
Friday, March 19, 2021
Eurozone, Financial services, Finance, Money, Interest rates, Banking, €STR, European Central Bank, TARGET2, Euro

18 March 2021

Key Points: 
  • 18 March 2021

    The European Central Bank (ECB) will start publishing compounded STR average rates and a compounded index based on the euro short-term rate (STR) on 15 April 2021.

  • Publication will take place on each TARGET2 business day at 09:15 CET and will include compounded STR average rates for tenors of 1 week, 1 month, 3 months, 6 months and 12 months, as well as a compounded STR index enabling the derivation of compounded rates for any non-standard tenor.
  • The ECB is responding to market feedback in favour of having compounded rates based on the STR published regularly by a trusted authority.
  • The compounded STR average rates and index will be published via the Market Information Dissemination (MID) platform and through the ECBs Statistical Data Warehouse (SDW).

ECB starts publishing compounded euro short-term rate (€STR) average rates on 15 April 2021

Retrieved on: 
Thursday, March 18, 2021
Eurozone, Financial services, Finance, Money, Interest rates, Banking, €STR, European Central Bank, TARGET2, Euro

18 March 2021

Key Points: 
  • 18 March 2021

    The European Central Bank (ECB) will start publishing compounded STR average rates and a compounded index based on the euro short-term rate (STR) on 15 April 2021.

  • Publication will take place on each TARGET2 business day at 09:15 CET and will include compounded STR average rates for tenors of 1 week, 1 month, 3 months, 6 months and 12 months, as well as a compounded STR index enabling the derivation of compounded rates for any non-standard tenor.
  • The ECB is responding to market feedback in favour of having compounded rates based on the STR published regularly by a trusted authority.
  • The compounded STR average rates and index will be published via the Market Information Dissemination (MID) platform and through the ECBs Statistical Data Warehouse (SDW).

Over Half of Financial Institutions Admit LIBOR Transition Plans Delayed by Covid-19

Retrieved on: 
Thursday, March 11, 2021
Finance, Data management, Professional services, Technology, Software, Money, Finance, Swaps, Financial services, Interest rates, Banking, Libor, United States housing bubble

The research, involving tier one financial organizations across APAC, EMEA and North America, explored how they are preparing to transition away from the LIBOR interest rate-setting mechanism to the Risk Free Rate regulatory framework.

Key Points: 
  • The research, involving tier one financial organizations across APAC, EMEA and North America, explored how they are preparing to transition away from the LIBOR interest rate-setting mechanism to the Risk Free Rate regulatory framework.
  • 54% have experienced disruption to their LIBOR transition due to the impact of Covid-19, placing them behind schedule or requiring assistance to meet the deadline.
  • One of these is content risk, a key consideration when operating in heavily regulated sectors such as financial services.
  • The content challenges for the LIBOR regulatory transition can be demarcated into two key areas:
    Accumulated content built up over 40 or so years of LIBOR operation.

Vertiv Announces Successful Completion of Term Loan Repricing

Retrieved on: 
Wednesday, March 10, 2021
Internet, Hardware, Data management, Technology, Software, Finance, Money, Corporate finance, Vertiv, Interest rates, Banking, Libor, New York Stock Exchange

Vertiv Holdings Co (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, today announced the completion of the repricing of Vertiv Group Corporations, a subsidiary of Vertiv Holdings Co, existing seven-year $2.2 billion Term Loan.

Key Points: 
  • Vertiv Holdings Co (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, today announced the completion of the repricing of Vertiv Group Corporations, a subsidiary of Vertiv Holdings Co, existing seven-year $2.2 billion Term Loan.
  • The repricing reduces the interest on the Term Loan by 25 basis points to LIBOR + 275 basis points, resulting in interest savings of approximately $5.5 million per year.
  • Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to ensure its customers vital applications run continuously, perform optimally and grow with their business needs.
  • Headquartered in Columbus, Ohio, USA, Vertiv employs approximately 20,000 people and does business in more than 130 countries.

ICE Benchmark Administration Publishes Feedback Statement for the Consultation on Its Intention to Cease the Publication of LIBOR® Settings

Retrieved on: 
Friday, March 5, 2021
Technology, Finance, Publishing, Public relations, Investor relations, Banking, Communications, Professional services, Software, Data management, Money, Finance, Financial services, Interest rates, Swaps, Banking, Libor, United States housing bubble, Intercontinental Exchange, New York Stock Exchange, Independent Betting Adjudication Service, U.S. Dollar ICE Bank Yield Index, ICE Benchmark Administration, Intercontinental Exchange

As a result, IBA considered that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates.

Key Points: 
  • As a result, IBA considered that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates.
  • Further information on the feedback received is available in IBAs consultation feedback statement .
  • ICE LIBOR, LIBOR and ICE Benchmark Administration are registered trademarks of IBA and/or its affiliates.
  • Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.

ICE Announces Record Activity in Gilts and Sterling Rates Complex

Retrieved on: 
Thursday, March 4, 2021
Professional services, Data management, Technology, Finance, Software, Banking, Finance, Money, Futures exchanges, Interest rates, Financial markets, Economy of London, Futures contract, Intercontinental Exchange, Interest rate future, Derivative, Euribor, New York Stock Exchange

Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announced record activity across its benchmark Gilts and Sterling rates complex as the market manages Sterling-related risk.

Key Points: 
  • Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announced record activity across its benchmark Gilts and Sterling rates complex as the market manages Sterling-related risk.
  • Short Sterling futures and options, the benchmark for managing UK interest rate risk, reached record open interest of more than 20.1 million contracts on March 1, 2021.
  • As one of the leading venues for interest rate derivatives, ICE offers a comprehensive range of benchmark products alongside its Sterling rates complex including Euribor futures and options, SOFR futures and STR futures.
  • Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.

ICE Benchmark Administration Introduces ICE SONIA Indexes to Assist UK Lending Markets Transition to SONIA

Retrieved on: 
Wednesday, March 3, 2021
Finance, Banking, Data management, Professional services, Technology, Interest rates, Banking in the United Kingdom, Sonia, ICE Benchmark Administration, Intercontinental Exchange, SONIA

IBA applies the following operational and economic features to generate ten possible ICE SONIA Indexes:

Key Points: 
  • IBA applies the following operational and economic features to generate ten possible ICE SONIA Indexes:
    Zero (0)% floor: To address concerns around potential negative interest rates in the future, the ICE SONIA Indexes can incorporate a minimum SONIA rate of 0%.
  • If the daily SONIA value falls below 0%, the ICE SONIA Indexes can be calculated using 0% as a floor, instead of the actual SONIA value.
  • IBA has created the ICE SONIA Indexes to help address the key operational considerations of lenders and borrowers for SONIA-based loans, said Tim Bowler, President of ICE Benchmark Administration.
  • We believe the ICE SONIA Indexes can play an important part in helping lenders and borrowers as they transition to SONIA.

Vornado Completes $525 Million Refinancing of One Park Avenue

Retrieved on: 
Friday, February 26, 2021
Money, Finance, Financial services, Interest rates, Banking, Swaps, Vornado Realty Trust, VNO, Libor, Vornado

NEW YORK, Feb. 26, 2021 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (NYSE: VNO) announced today that its 55% owned joint venture has completed a $525million refinancing of One Park Avenue, a 943,000 square foot Manhattan office building.

Key Points: 
  • NEW YORK, Feb. 26, 2021 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (NYSE: VNO) announced today that its 55% owned joint venture has completed a $525million refinancing of One Park Avenue, a 943,000 square foot Manhattan office building.
  • The interest only loan carries a rate of LIBOR plus 1.107% (currently 1.222%) and matures in February 2026, as fully extended.
  • The loan replaces the previous $300 million loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021.
  • Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2020.