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Cash Rates vs. Deposit Rates

Posted: December 7th, 2016, 1:56 pm
by equanimity
On the Bloomberg "Swap Curve Builder" screen, I see that there is a choice between "cash rates" and "deposit rates" for the short-end instrument type.  What is the difference between these two?  Thanks!

Re: Cash Rates vs. Deposit Rates

Posted: December 7th, 2016, 2:55 pm
by Martinghoul
The wisest course of action would be to ask BBG help.

Re: Cash Rates vs. Deposit Rates

Posted: December 7th, 2016, 4:39 pm
by acastaldo
According to BBG doc: "Cash rates are the interest rates at which banks can borrow funds from other banks in the market." Deposit rates are not explicitly defined but presumably are rates which banks can earn by depositing funds with other banks.

Re: Cash Rates vs. Deposit Rates

Posted: December 9th, 2016, 1:25 pm
by ppauper
According to BBG doc: "Cash rates are the interest rates at which banks can borrow funds from other banks in the market." Deposit rates are not explicitly defined but presumably are rates which banks can earn by depositing funds with other banks.
according to your definition, if bank A lends money to bank B, A's deposit rate would be B's cash rate?

Re: Cash Rates vs. Deposit Rates

Posted: December 13th, 2016, 2:16 pm
by acastaldo

Re: Cash Rates vs. Deposit Rates

Posted: December 13th, 2016, 4:12 pm
by ppauper
which jurisdiction is the original poster in?
in the US, in addition to borrowing money from other banks (at the fed funds rate, 0.5%), it's possible to either borrow money from the Fed (at the discount rate, 1%) or earn money on deposits at the Fed (0.5%)