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TLREF (Turkish Lira Overnight Reference Rate)

TLREF is a reference rate calculated from overnight trades on the Borsa Istanbul Repo-Reverse Repo Market, reflecting the cost of lira borrowing and lending when credit risk is minimal. TLREF was created to meet the need for a short-term lira benchmark that can serve as the underlying or reference in derivatives, floating-rate debt instruments and financial contracts.
Contents
  1. 1.Key points
  2. 2.How it works
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Official sources
  6. 6.Frequently asked questions

Key Points

  • The calculation rules are set out in Borsa Istanbul’s TLREF rule set.
  • TLREF moves close to the CBRT policy rate and interbank liquidity conditions and is watched as a daily gauge of short-term lira rates.
  • TLREF is an overnight rate and should not be compared directly with one-year deposit or bond rates.

How It Works

on days the Repo-Reverse Repo Market is open, the rate is calculated using overnight trade data up to a set time of day and published by Borsa Istanbul on full business days. The TLREF index tracks the daily compounded accumulation of the rate.

Interpretation

TLREF moves close to the CBRT policy rate and interbank liquidity conditions and is watched as a daily gauge of short-term lira rates. Coupons of some floating-rate bonds and money market comparisons can be based on TLREF.

Pitfalls

TLREF is an overnight rate and should not be compared directly with one-year deposit or bond rates. The daily rate and the cumulative index return are different concepts.

Official Sources

Official regulation and sources the definition is based on.

Pages Where This Term Appears

Related Terms

Frequently Asked Questions

TLREF is a reference rate calculated from overnight trades on the Borsa Istanbul Repo-Reverse Repo Market, reflecting the cost of lira borrowing and lending when credit risk is minimal.

on days the Repo-Reverse Repo Market is open, the rate is calculated using overnight trade data up to a set time of day and published by Borsa Istanbul on full business days. The TLREF index tracks the daily compounded accumulation of the rate.

Prepared by: Yatırımcı.AI Research TeamLast reviewed: Method: MethodologyEditorial policy