
Will Eonia Sink or Swim in Hunt for Euribor Replacement?
The European Central Bank has intervened to rescue stalling benchmark reform and find a new risk-free rate for swaps. But the Eonia rate has seen dwindling transaction volumes in recent years, and while the ECB’s new overnight rate is regarded as the top contender, it may take time for the market to develop confidence in a new reference rate, reports Risk.net’s Chris Davis.
While working groups in other currencies had selected alternative risk-free rates (RFRs) to Libor for swaps contracts and were planning the transition process, hardly any headway appeared to have been made in the Eurozone—the second-largest interest rate swap market in the world. “They’ve wasted a lot of time and achieved precious little,” said a portfolio manager at a pension fund management firm in London. Worse, the number of banks submitting to the Euribor panel had fallen to a level where
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Management & Strategy
Waters Wavelength
Waters Wavelength Podcast: Episode 226 (M&A and people)
On this episode of the Wavelength Podcast, Wei-Shen and Tony talk about the importance of communication when it comes to M&A activity within a company.
Subscribe to Weekly Wrap emails
Most read
- PanAgora’s CIO & head of sustainable investing explain firm’s ESG framework, best practices
- Itiviti’s Blueprint for Success—Investing in People and Products
- The curious case of Larry Fondren and DelphX
- Waters Wrap: Microsoft’s capital markets play (And Algorithmics thoughts)
- Confidential computing projects could answer industry’s cloud security questions