Industry WIKI

A loan agreement (also known as a lending agreement) is a contract between a borrower and a lender which regulates the mutual promises made by each party. There are many types of loan agreements, including facilities agreements, revolvers, term loans, and working capital loans. Loan agreements are documented via a compilation of the various mutual promises made by the involved parties.

Lombard credit (or lombard loan) is a form of short-term secured lending, characterized by loans against movable collateral, today mostly in the form of account balances, securities or life insurance policies. The lombard rate is a central bank lending rate charged to commercial banks for short-term loans with securities pledged as collateral.

The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less.

The overnight market is the component of the money market involving the shortest term loan. The overnight market is primarily used by banks and other financial institutions. Lenders agree to lend borrowers funds only "overnight", i.e., the borrower must repay the borrowed funds plus interest at the start of business the next day. Given the short period of the loan, the interest rate cha

On September 17, 2019, interest rates on overnight repurchase agreements (or "repos"), which are short-term loans between financial institutions, experienced a sudden and unexpected spike. A measure of the interest rate on overnight repos in the United States, the Secured Overnight Financing Rate (SOFR), increased from 2.43 percent on September 16 to 5.25 percent on September 17. During