Ever since the onset of the financial crisis in 2008, volatility has become a critical aspect for investors to consider in their portfolios.

This month, the STOXX® GC Pooling EUR Deferred Funding Rate (GC Pooling Deferred), a benchmark of overnight borrowing costs in Europe, turned five years old, as did the full STOXX GC Pooling money market curve. 

The European Central Bank (ECB) recently conducted a market consultation to assess three candidate euro overnight rates as alternatives to the current benchmark EONIA, the long-established risk-free rate (RFR) for pan-European lending.

The secured interbank lending market may play a role in the search for a reliable indicator of the cost of funding in Europe.