SARON and Lenders margin rates

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  • Benutzernamehome
  • Status Member
  • Registriert seit3/24/23
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Is there a pattern on the lenders margin rate, that is if SARON goes up is there a trend by the bank to lower their margin rate? 

 
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  • BenutzernameSepl
  • OrtZürich
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  • Registriert seit10/11/19
  • Beiträge18

Central banks control short-term interest rates, such as the Saron. When the Saron rises, other interest rates rise as well. So I tend to think that a rising Saron leads to rising margin rates.

Depending on the currency, the margin rates differ, those for USD are less dependent on the Saron and more on the Fed.