What are my Pricing Index Options?

In this Article

 

What pricing indices are available?

  • US Treasury (Constant Maturity)
  • LIBOR 
    • Source: 1 - 12 month durations - ICE LIBOR
      • Licensing
      • Disclaimer: “ICE BENCHMARK ADMINISTRATION LIMITED MAKES NO WARRANTY, EXPRESS OR IMPLIED, EITHER AS TO THE RESULTS TO BE OBTAINED FROM THE USE OF ICE LIBOR AND/OR THE FIGURE AT WHICH ICE LIBOR STANDS AT ANY PARTICULAR TIME ON ANY PARTICULAR DAY OR OTHERWISE. ICE BENCHMARK ADMINISTRATION LIMITED MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE IN RESPECT OF ANY USE OF ICE LIBOR.”
    • Source: 2 - 30 year durations - Tullet Prebon Swaps
  • Prime
  • Federal Funds
  • SOFR
  • SONIA
  • Funding Curve
  • Custom Funding Curve
  • Custom Funding Index

 

How often are indices updated?

If not using a custom source, indices are updated according to the following the schedule:

  • Treasury and FHLB (if using Funding Curve as source)
    • PrecisionLender updates these rates at roughly 11:00 PM Eastern Time, Monday through Friday.
    • PrecisionLender updates funding curve information at night, after the end of the same business day that Treasury and FHLB rates are published. These rates will display on the next business day that follows.
    • For example, when we receive funding curve information on Tuesday night the rates are from the business day on Tuesday; therefore, a lender looking at the funding curve during the business day on Wednesday will see the Tuesday rates.
  • LIBOR
    • PrecisionLender updates LIBOR at roughly 11:00 PM Eastern Time, Tuesday through Saturday.
    • When PrecisionLender updates LIBOR information at night, we update it with rates from the most recent business day.
    • For example, we run Tuesday’s rates on Tuesday night and publish those rates on the next business day, in this case, Wednesday.
  • SOFR
    • The earliest available pricing date for SOFR is 6/7/19. SOFR is only available as an index.
    • When PrecisionLender updates SOFR information at night, we update it with rates from the previous business day.
    • For example, when we receive funding curve information on Thursday night, we will be receiving rates from the business day on Wednesday; therefore, a lender that uses SOFR on Friday will see the rates from Wednesday.
  • SONIA
    • The SONIA rate information is published the business day following the day that the rate is made publicly available by the Bank of England. Public availability of these rates comes following a 24 hour publishing delay, at a minimum.
    • For example, on Monday we receive and run Thursday’s rates to display on Tuesday. On Tuesday, we receive and run Friday’s rates to display on Wednesday.
  • Federal Funds Rate
    • When PrecisionLender updates Federal Funds information at night, we update it with rates from the previous business day.
    • For example, when we receive index information on Thursday night, we will be receiving rates from the business day on Wednesday; therefore, a lender that uses Federal Funds rate on Friday will see the rates from Wednesday.
  • These schedules may be affected by bank, national, or international holidays.

You can also check the Last Updated Date in the Standard Indices table in the Rates and Indices section of Administration.

 

How do I select or update an index for a product?

Index selections for each rate type are made in the product assumptions

One thing to note for Fixed Rate loans is that the index can be set at the product level and the regional level. 

  • If you'd like a Fixed Rate index to apply to all products at a given region level, make your selection in the Funding Curve Family for Fixed Rate Spread Lock dropdown in the regional assumptions and in the product assumptions, leave Override Fixed Rate Spread Lock Funding Curve Family unchecked.
  • If you'd like a Fixed Rate index for a product that is different from the regional assumptions, check Override Fixed Rate Spread Lock Funding Curve Family in the product assumptions and then make your index selection in the Fixed Rate Spread Lock Funding Curve Family dropdown that will appear to the right.