Federal Funds Effective Rate definition: Copy, customize, and use instantly
Introduction
The term "Federal Funds Effective Rate" refers to the weighted average interest rate at which depository institutions lend reserve balances to other depository institutions overnight, calculated and published daily by the Federal Reserve Bank of New York. It is an essential benchmark rate influencing monetary policy, financial markets, and lending conditions in the United States.
Below are various examples of how "Federal Funds Effective Rate" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Federal Funds Effective Rate" in loan agreements
This definition ties "Federal Funds Effective Rate" to borrowing terms.
"Federal Funds Effective Rate" means the weighted average rate for overnight transactions in the federal funds market, as published by the Federal Reserve Bank of New York, applicable to interest rate calculations under this agreement.
Definition of "Federal Funds Effective Rate" in derivative contracts
This definition connects "Federal Funds Effective Rate" to financial instruments.
"Federal Funds Effective Rate" refers to the average overnight rate for federal funds transactions, used as a benchmark for pricing or adjusting payments in derivative contracts.
Definition of "Federal Funds Effective Rate" in monetary policy references
This definition links "Federal Funds Effective Rate" to central banking.
"Federal Funds Effective Rate" means the rate published by the Federal Reserve Bank of New York, representing the cost of overnight lending between banks, and serving as a key indicator of U.S. monetary policy.
Definition of "Federal Funds Effective Rate" in interest rate swaps
This definition applies "Federal Funds Effective Rate" to swap agreements.
"Federal Funds Effective Rate" includes the rate calculated and published daily by the Federal Reserve Bank of New York, used as a reference rate for determining payments in interest rate swap transactions.
Definition of "Federal Funds Effective Rate" in commercial loan agreements
This definition ties "Federal Funds Effective Rate" to loan pricing.
"Federal Funds Effective Rate" refers to the weighted average interest rate for overnight lending transactions between depository institutions, as published by the Federal Reserve Bank of New York, and used as a benchmark for setting interest rates in commercial loan agreements.
Definition of "Federal Funds Effective Rate" in floating rate notes
This definition connects "Federal Funds Effective Rate" to bond instruments.
"Federal Funds Effective Rate" means the overnight interbank lending rate, published by the Federal Reserve Bank of New York, used to calculate interest payments for floating rate notes.
Definition of "Federal Funds Effective Rate" in central bank operations
This definition links "Federal Funds Effective Rate" to reserve management.
"Federal Funds Effective Rate" includes the average rate for overnight federal funds transactions, reflecting the cost of borrowing or lending reserve balances between depository institutions, as published by the Federal Reserve.
Definition of "Federal Funds Effective Rate" in banking liquidity management
This definition ties "Federal Funds Effective Rate" to liquidity planning.
"Federal Funds Effective Rate" refers to the daily published average rate for overnight borrowing and lending in the federal funds market, used as a key metric for managing liquidity in banking operations.
Definition of "Federal Funds Effective Rate" in corporate finance
This definition connects "Federal Funds Effective Rate" to treasury strategies.
"Federal Funds Effective Rate" means the published average interest rate for overnight interbank loans, often used by corporate treasury departments to benchmark short-term borrowing costs.
Definition of "Federal Funds Effective Rate" in mortgage-backed securities
This definition links "Federal Funds Effective Rate" to mortgage instruments.
"Federal Funds Effective Rate" includes the overnight rate published by the Federal Reserve Bank of New York, serving as a benchmark for pricing or adjusting payments on mortgage-backed securities.
Definition of "Federal Funds Effective Rate" in investment funds
This definition ties "Federal Funds Effective Rate" to portfolio benchmarks.
"Federal Funds Effective Rate" refers to the weighted average interest rate for overnight lending among banks, used by investment funds to benchmark performance or set target returns.
Definition of "Federal Funds Effective Rate" in syndicated loans
This definition connects "Federal Funds Effective Rate" to multi-lender agreements.
"Federal Funds Effective Rate" means the rate published by the Federal Reserve Bank of New York, representing the average overnight borrowing rate, and used as a reference rate in syndicated loan agreements.
Definition of "Federal Funds Effective Rate" in credit agreements
This definition links "Federal Funds Effective Rate" to debt covenants.
"Federal Funds Effective Rate" includes the average overnight rate for federal funds transactions, published by the Federal Reserve Bank of New York, and used to calculate interest on obligations under credit agreements.
Definition of "Federal Funds Effective Rate" in financial modeling
This definition ties "Federal Funds Effective Rate" to risk assessment.
"Federal Funds Effective Rate" refers to the weighted average rate for overnight interbank loans, published daily by the Federal Reserve, often incorporated into financial models for forecasting interest rate trends.
Definition of "Federal Funds Effective Rate" in repo transactions
This definition connects "Federal Funds Effective Rate" to repurchase agreements.
"Federal Funds Effective Rate" means the average overnight interbank lending rate, as published by the Federal Reserve Bank of New York, used as a benchmark in repo transaction pricing.
Definition of "Federal Funds Effective Rate" in international banking
This definition links "Federal Funds Effective Rate" to cross-border operations.
"Federal Funds Effective Rate" includes the average rate for overnight lending among U.S. banks, as published by the Federal Reserve, and used in international banking for benchmarking U.S. dollar-denominated loans.
Definition of "Federal Funds Effective Rate" in structured finance
This definition ties "Federal Funds Effective Rate" to securitization.
"Federal Funds Effective Rate" refers to the weighted average overnight lending rate, published by the Federal Reserve, used as a reference rate in structured finance transactions.
Definition of "Federal Funds Effective Rate" in monetary policy discussions
This definition connects "Federal Funds Effective Rate" to central bank strategy.
"Federal Funds Effective Rate" means the average interest rate for overnight lending transactions between depository institutions, serving as a primary indicator of the Federal Reserve’s monetary policy stance.
Definition of "Federal Funds Effective Rate" in risk-free rate benchmarks
This definition links "Federal Funds Effective Rate" to safe assets.
"Federal Funds Effective Rate" refers to the average overnight rate for interbank transactions, considered a risk-free benchmark rate for short-term financial instruments.
Definition of "Federal Funds Effective Rate" in financial derivatives
This definition ties "Federal Funds Effective Rate" to options and futures.
"Federal Funds Effective Rate" includes the average overnight rate for federal funds transactions, used as a key variable in pricing derivatives linked to short-term interest rates.
Definition of "Federal Funds Effective Rate" in private equity financing
This definition connects "Federal Funds Effective Rate" to leveraged investments.
"Federal Funds Effective Rate" means the rate published by the Federal Reserve Bank of New York, representing the average overnight interbank lending rate, and used as a reference in private equity financing structures.
Definition of "Federal Funds Effective Rate" in treasury management systems
This definition links "Federal Funds Effective Rate" to cash management.
"Federal Funds Effective Rate" refers to the average interest rate for overnight lending, published by the Federal Reserve, and integrated into treasury management systems for liquidity planning and investment decisions.
Definition of "Federal Funds Effective Rate" in currency swaps
This definition ties "Federal Funds Effective Rate" to cross-currency instruments.
"Federal Funds Effective Rate" includes the weighted average overnight rate for interbank transactions, used as a reference rate in structuring and pricing currency swaps involving the U.S. dollar.
Definition of "Federal Funds Effective Rate" in financial risk management
This definition connects "Federal Funds Effective Rate" to risk mitigation.
"Federal Funds Effective Rate" refers to the published average rate for overnight interbank loans, serving as a benchmark for managing interest rate risk in financial portfolios.
Definition of "Federal Funds Effective Rate" in municipal finance
This definition ties "Federal Funds Effective Rate" to public funding.
"Federal Funds Effective Rate" means the average overnight lending rate between depository institutions, as published by the Federal Reserve Bank of New York, used as a benchmark in municipal bond pricing.
Definition of "Federal Funds Effective Rate" in asset-backed securities
This definition connects "Federal Funds Effective Rate" to structured products.
"Federal Funds Effective Rate" refers to the weighted average rate for overnight interbank loans, used as a reference rate for asset-backed securities to determine interest payments.
Definition of "Federal Funds Effective Rate" in central bank liquidity facilities
This definition links "Federal Funds Effective Rate" to financial stability tools.
"Federal Funds Effective Rate" includes the average overnight interbank lending rate, used by central banks to manage liquidity and provide financial stability.
Definition of "Federal Funds Effective Rate" in real estate financing
This definition ties "Federal Funds Effective Rate" to property loans.
"Federal Funds Effective Rate" refers to the weighted average rate published by the Federal Reserve Bank of New York, often used to benchmark short-term interest rates for real estate financing.
Definition of "Federal Funds Effective Rate" in portfolio optimization
This definition connects "Federal Funds Effective Rate" to investment strategy.
"Federal Funds Effective Rate" means the average overnight interbank lending rate, serving as a key variable in optimizing portfolios with short-term financial instruments.
Definition of "Federal Funds Effective Rate" in infrastructure projects
This definition links "Federal Funds Effective Rate" to large-scale developments.
"Federal Funds Effective Rate" refers to the average interest rate for overnight loans between depository institutions, used as a benchmark for financing infrastructure projects.
Definition of "Federal Funds Effective Rate" in currency forward contracts
This definition ties "Federal Funds Effective Rate" to foreign exchange agreements.
"Federal Funds Effective Rate" includes the average overnight rate for interbank transactions, used to calculate interest differentials in currency forward contracts.
Definition of "Federal Funds Effective Rate" in commercial paper issuance
This definition connects "Federal Funds Effective Rate" to short-term debt instruments.
"Federal Funds Effective Rate" refers to the rate published by the Federal Reserve Bank of New York, often used as a benchmark for pricing commercial paper issued by corporations.
Definition of "Federal Funds Effective Rate" in venture capital funding
This definition links "Federal Funds Effective Rate" to startup investments.
"Federal Funds Effective Rate" means the weighted average overnight lending rate, used by venture capital firms to benchmark the cost of funding and determine return expectations.
Definition of "Federal Funds Effective Rate" in insurance reserve management
This definition ties "Federal Funds Effective Rate" to actuarial models.
"Federal Funds Effective Rate" refers to the average overnight interbank rate, used in insurance reserve calculations to forecast investment income and liabilities.
Definition of "Federal Funds Effective Rate" in leveraged financing
This definition connects "Federal Funds Effective Rate" to high-risk loans.
"Federal Funds Effective Rate" includes the average rate for overnight federal funds transactions, used as a reference for interest rate calculations in leveraged buyouts and high-yield debt.
Definition of "Federal Funds Effective Rate" in corporate treasury operations
This definition links "Federal Funds Effective Rate" to liquidity optimization.
"Federal Funds Effective Rate" refers to the average interbank lending rate published by the Federal Reserve, used by corporate treasuries to benchmark short-term borrowing and investment decisions.
Definition of "Federal Funds Effective Rate" in debt capital markets
This definition ties "Federal Funds Effective Rate" to bond issuances.
"Federal Funds Effective Rate" means the weighted average overnight rate, serving as a benchmark for pricing floating-rate debt instruments in the capital markets.
Definition of "Federal Funds Effective Rate" in pension fund management
This definition connects "Federal Funds Effective Rate" to retirement planning.
"Federal Funds Effective Rate" refers to the published average overnight rate for interbank transactions, used in pension fund strategies to optimize returns on short-term investments.
Definition of "Federal Funds Effective Rate" in financial stress testing
This definition links "Federal Funds Effective Rate" to regulatory assessments.
"Federal Funds Effective Rate" includes the average overnight interbank lending rate, used as an input in stress tests to evaluate the resilience of financial institutions under adverse conditions.
Definition of "Federal Funds Effective Rate" in digital currency regulation
This definition ties "Federal Funds Effective Rate" to cryptocurrency benchmarks.
"Federal Funds Effective Rate" refers to the average rate for overnight interbank lending, used as a traditional benchmark in assessing interest rates for stablecoins and digital assets.
Definition of "Federal Funds Effective Rate" in sovereign debt instruments
This definition connects "Federal Funds Effective Rate" to government bonds.
"Federal Funds Effective Rate" means the weighted average overnight rate for federal funds transactions, used as a benchmark for pricing sovereign bonds and related derivatives.
Definition of "Federal Funds Effective Rate" in hedge fund strategies
This definition links "Federal Funds Effective Rate" to alternative investments.
"Federal Funds Effective Rate" refers to the average rate for overnight lending, used by hedge funds to benchmark borrowing costs and optimize leverage strategies.
Definition of "Federal Funds Effective Rate" in payment systems
This definition ties "Federal Funds Effective Rate" to transaction settlements.
"Federal Funds Effective Rate" means the rate published by the Federal Reserve, representing the average overnight interbank lending rate, used in the pricing of payment system services.
Definition of "Federal Funds Effective Rate" in cross-border trade finance
This definition connects "Federal Funds Effective Rate" to global commerce.
"Federal Funds Effective Rate" includes the weighted average overnight lending rate, serving as a reference for short-term trade financing in international markets.
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