I’m looking at some private notes with a coupon tied to the “CBNA Base Rate” which is “announced publicly by Citibank in New York, New York, from time to time.” I’ve searched Citi’s website and Googled myself crazy but cannot locate a “CBNA Base Rate” other than for India. Is this just Citibank’s US prime rate? Thanks for any help.
USA Prime Credit, my name Peggy. I don’t think base rate = prime, though I could be wrong. Doesn’t sound like it’s libor - what kind of notes are they?
It seems like the “base rate” is not the prime rate, but some hazy benchmark that the bank uses as a platform rate for its lending. http://www.businessdictionary.com/definition/base-rate.html I would not be surprised if different news articles interpret the definition loosely, since it has such a generic name.
LPoulin133 Wrote: ------------------------------------------------------- > USA Prime Credit, my name Peggy. > > I don’t think base rate = prime, though I could be > wrong. Doesn’t sound like it’s libor - what kind > of notes are they? They’re Tranche B Notes. They have USD, CAD and EUR denominated notes. The CAD are tied to the BA Rate and the EUR are tied to EURIBOR. The USD are tied to the “CBNA Base Rate” or LIBOR at the borrower’s option.
This is the only thing I could find on Citi’s website: “New York – Citibank said today it has lowered its base lending rate to 3.25% from 4.00%, effective today, Tuesday, December 16, 2008.” I believe the Prime Rate has also been 3.25% since Dec 2008 which is why I’m thinking CBNA Base Rate is just Citi’s wording for the Prime Rate.