Benchmark Rate
A benchmark rate is a reference rate used to measure the performance of investments. It is a rate that is used as a point of comparison for evaluating the performance of a financial product or portfolio. Benchmark rates are typically set by a central bank or other regulatory body and are used to measure the performance of investments against a predetermined standard. Benchmark rates are also used to measure the performance of a portfolio relative to a benchmark index or other benchmark rate.
History of Benchmark Rates
Benchmark rates have been used for centuries to measure the performance of investments. The earliest known benchmark rate was the London Interbank Offered Rate (LIBOR), which was established in the late 19th century. Since then, benchmark rates have been used to measure the performance of investments in a variety of markets, including the stock market, bond market, and foreign exchange market. In recent years, benchmark rates have become increasingly important as a tool for measuring the performance of investments.
Comparison of Benchmark Rates
| Benchmark Rate | Description |
|---|---|
| LIBOR | London Interbank Offered Rate |
| EURIBOR | Euro Interbank Offered Rate |
| FED Funds Rate | Federal Funds Rate |
| Prime Rate | U.S. Prime Rate |
| Overnight Rate | Overnight Interest Rate |
Summary
Benchmark rates are an important tool for measuring the performance of investments. They are typically set by a central bank or other regulatory body and are used to measure the performance of investments against a predetermined standard. For more information about benchmark rates, visit the websites of the Federal Reserve, the European Central Bank, and other central banks around the world.
See Also
- Interest Rate
- Yield Curve
- Inflation Rate
- Exchange Rate
- Treasury Yield
- Money Market Rate
- Discount Rate
- Swap Rate
- Repo Rate
- Base Rate
