London Interbank Offer Rate


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London Interbank Offer Rate

The interest rate participating banks offer to other banks for loans on the London market. LIBOR is the most widely used benchmark for short term interest rates in the world, primarily because most of the world's largest borrowers borrow money on the London market. Because it is so prominent, it is often used in other transactions, such as swaps. For example, an interest rate swaps may give the floating rate as "LIBOR +/- X base points." It is set each day by the British Bankers Association, which calculates it by averaging short term, inter-bank, deposit interest rates among the most creditworthy banks. See also: EURIBOR.
References in periodicals archive ?
Net Interest Margin Securities (NIMS) rated by Standard & Poor's continued to outperform original projections during the fourth quarter, as short-term rates, namely the London Interbank Offer Rate (LIBOR), remain at historic lows.
Interest rates are based on the three month London Interbank Offer Rate (LIBOR), recalculated quarterly, with both notes at 3 basis points below LIBOR.
The issue's interest rate will stand at London Interbank Offer Rate (libor) plus 150 basis points (bps) during the first year, and libor plus 175 bps and 200 bps for the second and third year respectively.

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