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UBS Asset Management has launched a suite of overnight rate ETFs.
The three new products aim to provide an alternative to cash, tracking the Euro Short Term, Secured Overnight Financing, and Sterling Overnight Index Average rates.
The ‘overnight rate’ is the interest rate that depository institutions, like banks, lend and borrow funds from each other in the overnight market. The overnight rate generally matches the lowest rate set by the central bank, and is used as a predictor for the movement of short-term interest rates for consumers.
