ESTR
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Euro short-term rate (€STR) |
|---|---|
| Categories | Business & Finance |
ESTR stands for Euro short-term rate (€STR), a bond & Fixed-Income abbreviation.
Overnight benchmark interest rate for the euro area, published by the European Central Bank since October 2019, reflecting the cost of unsecured overnight borrowing by euro-area banks. It replaced EONIA as the euro's main risk-free reference rate.
Example: The swap references ESTR, compounded daily over each quarterly period.
Usage notes
Usually written €STR with the euro sign and pronounced "ester." EONIA was recalculated as €STR plus a fixed spread until it ended in January 2022. Many euro derivatives and some floating-rate bonds now reference €STR, while EURIBOR remains common in loans.
Related abbreviations
More bond & Fixed-Income abbreviations
- CLO – Collateralized loan obligation
- CMBS – Commercial mortgage-backed security
- CMO – Collateralized mortgage obligation
- CoCo – Contingent convertible bond
- CP – Commercial paper
- DV01 – Dollar value of a basis point
- EURIBOR – Euro Interbank Offered Rate
- FRA – Forward rate agreement
- FRN – Floating-rate note
- GO – General obligation bond
- HY – High yield
- IG – Investment grade