EURIBOR, GBP LIBOR, SONIA, and Swap Rates

EURIBOR is an interbank lending rate that is averaged from reports by a panel of banks seeking unsecured Euro-denominated loans in the short-term money market. The EURIBOR index is the adjustable interest rate referenced on approximately EUR 150 trillion of debt and derivatives.

GBP LIBOR is an interbank lending rate that is averaged from reports by a panel of banks seeking unsecured British pound loans in the short-term London money market. The GBP LIBOR index is the adjustable interest rate referenced on trillions of pounds worth of debt and derivatives.

SONIA is the Sterling Overnight Index Average. It is published each London business day by the Bank of England and measures the cost of overnight, unsecured borrowing. As an overnight rate, SONIA cannot be used directly as a floating rate for a multi-day interest period. Instead, each day’s SONIA fixing must be collected and compounded together to calculate an overall floating rate for the period.

EURIBOR swaps are commonly used by real estate borrowers to hedge floating-rate EUR debt, structured to pay this fixed rate quarterly versus receiving 3-month EURIBOR quarterly, on an Actual/360 basis without amortization. Often used as a reference rate for fixed-rate debt.

GBP LIBOR swaps are commonly used by real estate borrowers to hedge floating-rate GBP debt, structured to pay this fixed rate quarterly versus receiving 3-month GBP LIBOR quarterly, on an Actual/365 fixed basis without amortization. Often used as a reference rate for fixed-rate debt.

STIBOR swaps are commonly used by real estate borrowers to hedge floating-rate SEK debt, structured to pay this fixed rate quarterly versus receiving 3-month STIBOR quarterly, on an Actual/360 basis without amortization. Often used as a reference rate for fixed-rate debt denominated in Swedish Kronor.

CIBOR swaps are commonly used by real estate borrowers to hedge floating-rate DKK debt, structured to pay this fixed rate quarterly versus receiving 3-month CIBOR quarterly, on an Actual/360 basis without amortization. Often used as a reference rate for fixed-rate debt denominated in Danish Kroner.

NIBOR swaps are commonly used by real estate borrowers to hedge floating-rate NOK debt, structured to pay this fixed rate quarterly versus receiving 3-month NIBOR quarterly, on an Actual/360 basis without amortization. Often used as a reference rate for fixed-rate debt denominated in Norwegian Kroner.

WIBOR swaps are commonly used by real estate borrowers to hedge floating-rate PLN debt, structured to pay this fixed rate quarterly versus receiving 3-month WIBOR quarterly, on an Actual/365 fixed basis without amortization. Often used as a reference rate for fixed-rate debt denominated in Polish Zloty.

PRIBOR swaps are commonly used by real estate borrowers to hedge floating-rate CZK debt, structured to pay this fixed rate quarterly versus receiving 3-month PRIBOR quarterly, on an Actual/360 basis without amortization. Often used as a reference rate for fixed-rate debt denominated in Czech Koruna.