Overnight Index Swap (OIS)
Also called: OIS, overnight index swap rate
An OIS swaps a fixed rate against the compounded overnight rate, so its fixed leg is a clean market forecast of average central bank policy over the term. Because overnight lending carries minimal credit risk, OIS became the standard discounting curve for collateralised derivatives after 2008. The old LIBOR-OIS spread was the market's favourite thermometer for bank funding stress.
Where this is taught
Definitions are the trailer. These free levels turn Overnight Index Swap into something you play — one bite-size lesson, with worked examples, a quiz and XP.