The American Financial Exchange (AFX), a transparent, rules-based and self-regulated electronic market for overnight and term unsecured lending among banks, financials and corporations, announced a new forward-looking 90-day AMERIBOR® rate called AMERIBOR Term90® This new rate is in addition to the AMERIBOR Term 30® rate launched in April, and to its suite of product offerings.
As LIBOR is phased out, lenders are looking for alternative interest rate benchmarks. AMERIBOR currently provides the only overnight lending benchmark specifically designed to track activity in the unsecured lending market. these new AMERIBOR benchmarks will provide short-term borrowers and lenders with insight into future funding costs, enhancing transparency and liquidity in the short-term, unsecured market.
AMERIBOR® Term-30, an IOSCO compliant rate, will be now a part of a term structure of proprietary forward-looking benchmarks which are represented on a 30 and 90-day funding cost. We will be publishing a 180- and 360-day forward-looking term rate, shortly. The AFX forward-looking rates are composed entirely from real-world funding transaction data comprised of commercial paper and commercial deposit issuances collected by the DTCC (Depository Trust and Clearing Corporation) and combined with the AMERIBOR® unsecured lending data.
AFX Chairman and CEO, Dr. Richard L. Sandor said. “AMERIBOR Term90® and a term structure have been under development for the past year. It was a collaborative effort of AFX staff and members of the AMERIBOR panel. The 90-day term rate can be found on www.ameribor.net as well as AMBOR90T on the Bloomberg terminal.
Currently AFX membership across the U.S. includes 174 banks, and 1,000 correspondents, with combined asset of over $4 trillion. There are 44 non-banks that include insurance companies, broker-dealers, private equity firms, hedge funds, futures commission merchants, and asset managers. For more information about AFX or AMERIBOR®, visit www.ameribor.net.
