How is the Euribor calculated? First of all, we must clarify what the Euribor is . The reference index, to which relationship between the most mortgages in the country are linke, is the twelve-month Euribor . This is an index that responds to the name European InterBank Offere Rate and is calculate by a panel of European banks that report every day at what rate interbank loans are carrie out. The panel is made up of European banks, including Santander, BBVA, Barclays, Deutsche Bank and Unicredit. In Spain , every business day, at eleven in the morning, the average interest rate at which financial entities lend capital for one week, one month, three months, six months and is publishe in the Official State Gazette. months . Despite the current decrease, the monthly average continues to stand at , that is, above the that was registere in the month of February.
Current situation of the Euribor
The -month Euribor , that is, the index to which most variable mortgages in Spain are reference, has fallen to . This is less if we compare it with last Monday. This implies one of its sharpest falls since July, exactly when the. ECB began the current Ghana Phone Number List upward interest rate cycle . The fall was generate thanks to the US banking crisis. Is there any link between mortgages and recent financial bankruptcies? Without a doubt, yes, there is . The evolution of variable interest rate mortgage loans is linke to the fate of the financial markets . Of course, the bankruptcy of several banking entities in the US affects you and, even more so, if it is a variable rate loan. Currently, the Euribor is having a break and this is because expectations for central banks to continue raising. Rates have suddenly stopp. The reason is simple, it is due to the fear that they will have to change their current plan to reduce interest rates.
The Euribor and the official ECB rate
It is necessary to consider that the evolution of the Euribor is closely linke to the official rate establish by the ECB . If the Euribor reach two years ago, it was because the ECB establish the deposit rate at. The remuneration that the institution Guatemala Phone Number List provides to the liquidity of the banks. On the other hand, if it began to escalate at the end of , it was because the market began to discount that the ECB would lead to an increase in the price of money due. To high inflation. How do investors protect their positions? A large number of investors protect their. Positions with financial products that bear the name Swap , against possible increases or decreases in rates , or currency exchange. These are movements that the Overnight Index Swaps collect to synthesize and interpret the intentions of all investors, in other words, what the market expects.
