The Euro OverNight Index Average (in the EONIA acronym) represents the weighted overnight rate applied to all unsecured financing transactions, concluded on the interbank market by major European banks and is priced for two days to two years . It is one of the two benchmarks used for the money and capital markets in the euro zone (Euribor). The Eonia benchmark was 2.6% on June 15, 2006, two years later, on June 5, 2008, was 4%. This type of product is linked to futures and a deposit rate; As the value of futures increases, the deposit rate decreases and vice versa. Eonia consists of a fixed rate and a variable: the fixed one is a cost that is paid at the beginning of the transaction, and at the end of the agreed period between the counterparties, a variable rate netting is performed. As a result of the subprime mortgage crisis, spread between Bid and Ask has widened considerably because there is no longer any trust between banks. Voices correlateemodify wikitesto Links externalize the wikitesto
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