Monday, January 3, 2011

LIBOR

The LIBOR (London Inter-Bank Offered Rate) is the main market reference rate in the UK, but which is widely used in global financial markets as a reference rate for bond floating rates, swap rates, currency market operations, and so-on. It's status as a reference rate is based on its characteristics such as being the interest rate that the largest and highest credit quality banks charge each other for loans - thus with banks being major players in financial markets, it is a key financing and important interest rate. The spread between the LIBOR and the LIBID (London Inter-Bank Bid Rate) is usually about 12.5 basis points.

Synonyms: London Inter-Bank Offered Rate, Reference rate, Market interest rate

Comments?
If you have any further questions or would like to add to the entry above, then please submit your thoughts below.

No comments:

Post a Comment