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Creditors are becoming warier about lending on an unsecured basis when things are so uncertain.
The SITR is unique in that it is also applicable for charities borrowing money on an unsecured basis.
The benchmark is supposed to represent the rate at which banks lend money to each other on an unsecured basis.
Every day banks submit the rates at which they could borrow money, on an unsecured basis, in various currencies and varying maturities.
It may be secured by a chattel mortgage on equipment, but larger, stronger companies are able to borrow on an unsecured basis.
It is ordinarily better to borrow on an unsecured basis, but frequently a borrower's credit rating is not strong enough to justify an unsecured loan.
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Al-Fayed has already bankrolled Fulham's rise through the divisions to the tune of more than £160million on an unsecured, interest-free basis.
PNB, for instance, has made numerous unsecured loans on the basis of character, which are difficult for local borrowers to get elsewhere.
When the Commodity Futures Trading Commission, which oversees derivatives markets, began looking into interest-rate setting in 2008, we were guided not only by questions about the decline of actual unsecured lending among banks, the supposed basis of Libor, but also by our founding statute, the Commodity Exchange Act.
The three-month Euribor-OIS spread, a measure of how large a premium investors require for unsecured (versus secured) credit, slipped to 23 basis points from 24 points Friday.
The Fed said late Sunday in Washington that the currency swaps were meant "to help improve liquidity conditions in U.S. dollar funding markets and to prevent the spread of strains to other markets and financial centers," The three-month Euribor-OIS spread, a measure of how much of a premium investors require for unsecured, versus secured, credit, slipped to 23 basis points from 24 points Friday.
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