Basisrate
Basisrate is a financial reference rate used as the starting point for calculating interest on a range of loans, securities, and derivatives. It provides a common baseline from which spreads, margins, and other adjustments derive their value, helping align pricing with current market conditions and standardize agreement terms across counterparties.
Calculation and publication: Basisrate may be produced by aggregating inputs such as interbank lending data, central
Usage: In loan agreements, the nominal rate is frequently expressed as Basisrate plus a contractual spread.
Relation to other concepts: Basisrate relates to base rates, reference rates, and benchmark rates, and is influenced
See also: base rate; reference rate; SOFR; SONIA; EURIBOR; LIBOR; risk-free rate; interbank rate.