euriborkorot

Euriborkorot is a neologism that appears in financial discussions as a reference to a proposed or imagined benchmark intended to blend features of the Euribor interbank offered rate with an additional component aimed at addressing weaknesses attributed to traditional IBORs. It does not correspond to an official standard and has no formal definition in major financial glossaries.

In hypothetical designs, euriborkorot would function as a composite rate, drawing on Euribor-style submissions or observed funding costs for the Euribor portion and combining them with a secondary input such as a risk-free rate proxy, a transaction-based measure, or an overlay adjustment. The exact calculation varies across discussions, reflecting ongoing debates about transparency, resilience, and regulatory alignment.

Origins and usage of the term are largely confined to online forums, blog posts, and academic papers that explore benchmark reform after criticisms of IBORs. It is typically used as a thought experiment to illustrate how a hybrid rate might be constructed and governed, rather than as a concrete proposal with wide consensus. Regulators and market participants have not endorsed euriborkorot, and it remains a speculative concept rather than an adopted standard.

In the broader context, euriborkorot exemplifies ongoing interest in developing more robust, transparent benchmarks that can withstand manipulation and market stress, while maintaining continuity with established reference rates. See also Euribor, IBOR reform, and related benchmark terminology.