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RUSFAR

The secured money-market rate, calculated from repo transactions with a central counterparty.

How to read the number

It shows the price of short money against high-quality collateral; the coupons of some floaters and the results of money-market funds rest on it.

When the metric lies

A secured rate sits below an unsecured one because it carries no counterparty credit risk. Substituting it for an interbank lending rate in a calculation is wrong.

Also known as: secured funding rate

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