EONIA Swap Index
EURIBOR may be the overnight rate established for the price of the euro, but it is the EONIA Swap Index that more closely resembles the actual euro market price since EONIA is offered as a mid-market rate on any given day by banks in the money market.
The EONIA Swap Index rate should not be confused with the EONIA rate. The EONIA rate is like the Effective Funds rate in the United States, while the EONIA Swap Index rate is quite different. The EONIA Swap Index rate will always be above the EONIA rate, because borrowing costs will always be higher at this level. EONIA sets the foundation for the EONIA Swap Index rate and it is employed for trading swaps along the yield curve. The EONIA fixing time is 19:00 CET, while the EONIA ...
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