ESTR

Business & Finance abbreviation · Bond & Fixed-Income

ESTR
Stands forEuro short-term rate (€STR)
CategoriesBusiness & Finance

ESTR stands for Euro short-term rate (€STR), a bond & Fixed-Income abbreviation.

Overnight benchmark interest rate for the euro area, published by the European Central Bank since October 2019, reflecting the cost of unsecured overnight borrowing by euro-area banks. It replaced EONIA as the euro's main risk-free reference rate.

Example: The swap references ESTR, compounded daily over each quarterly period.

Usage notes

Usually written €STR with the euro sign and pronounced "ester." EONIA was recalculated as €STR plus a fixed spread until it ended in January 2022. Many euro derivatives and some floating-rate bonds now reference €STR, while EURIBOR remains common in loans.

More bond & Fixed-Income abbreviations

  • CLO – Collateralized loan obligation
  • CMBS – Commercial mortgage-backed security
  • CMO – Collateralized mortgage obligation
  • CoCo – Contingent convertible bond
  • CP – Commercial paper
  • DV01 – Dollar value of a basis point
  • EURIBOR – Euro Interbank Offered Rate
  • FRA – Forward rate agreement
  • FRN – Floating-rate note
  • GO – General obligation bond
  • HY – High yield
  • IG – Investment grade

See all 42 bond & Fixed-Income abbreviations →