IHS Markit does not currently offer any licences that allow for use of these rates.
A series of dynamic rates that measure U.S. Dollar cost of funding in institutional markets
The USD Credit Inclusive Term Rate (CRITR) & Credit Inclusive Term Spread (CRITS) are designed to be a broad-based measure of funding levels for banking institutions funding in U.S. Dollar, in institutional markets, on a senior unsecured basis.
When available, our USD CRITR & CRITS will be the first credit sensitive rates to utilize a wide-ranging constituent base that uses virtually all USD institutional certificate of deposit and commercial paper transactions.
They will help firms with the task of minimizing value transfer on legacy USD LIBOR positions at LIBOR cessation date, as an add-on to SOFR, or a standalone all-in rate, and an alternative to more static fallback rates. It can also be used as a proactive strategy to move away from USD LIBOR across fixed income products, loans, CLOs as well as OTC derivative instruments, providing a credit sensitive exposure for those cases where SOFR by itself is not a suitable replacement rate.
The USD CRITR & CRITS rules-based methodology will be publicly disclosed. IHS Markit plans for these rates to be administered by IHS Markit Benchmark Administration Ltd. (IMBA UK) in compliance with the UK Benchmark Regulation and the IOSCO Principles for Financial Benchmarks, subject to necessary regulatory and internal approvals.
Key benefits:
- Adoption Flexibility - apply to SOFR compounded, averaged or term SOFR, as well as other benchmarks lacking a dynamic credit component, or use the all-in-rate for simplicity
- Timeliness and Stability - methodology balances stability and reactiveness
- Data Availability - a broad-based, deep dataset to support a robust methodology
