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I could be wrong. But I think that the two rates serve slightly different purposes. The federal funds rate is an overnight rate for one. And I'm sure that Amer
by arkis22 10y ago
I could be wrong. But I think that the two rates serve slightly different purposes.
The federal funds rate is an overnight rate for one. And I'm sure that American banks sometimes use libor for setting rates on securities.
I would be surprised if the Euro didn't have something that was closer to the federal funds rate than libor.
- gergoerdi 10y agoI guess that would be the Eonia: "Eonia reference rates are calculated by the European Central Bank, based on all overnight interbank assets" https://en.wikipedia.org/wiki/Eonia https://en.wikipedia.org/wiki/Eonia
- cm2187 10y agoEUR: EONIA GBP: SONIA
- paganel 10y ago> I would be surprised if the Euro didn't have something that was closer to the federal funds rate than libor. I used to work for a small, independent East-European mortgage-broker back when the financial crisis started and pretty much all the banks active on my country's market were using LIBOR as a reference rate when issuing mortgages, this is actually the first time when I hear about EONIA. I remember my boss telling me at some point to write a script that would parse the daily LIBOR rates from the Internet, and me being very surprised that one of few places from where I could get those values reliably was a crappy geocities-like page hidden inside a major bank's website.