London Interbank Offered Rate

A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars.

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.

London interbank offered rate (LIBOR)

The basic short-term rate of interest in the Eurodollar market and the rate to which many Eurodollar loans and deposits are tied. The LIBOR is similar in concept to that of the prime rate in the United States except that it is less subject to individual bank management.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

London Interbank Offered Rate

see LIBOR.

London Interbank Offered Rate

See LIBOR.

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References in periodicals archive

The indebted property developer revealed it has offered paying 175 basis points in interest over the London Interbank Offered Rate (Libor).

Dubai World's Limitless to seal $1.2bn debt deal

Last week, Kuwait's Gulf Holding Company sold $190 million of five-year Islamic bonds, or sukuk, at 275 basis points more than the three-month London Interbank Offered Rate (Libor).

Price guidance set for Nakheel bonds

The trust preferred securities will bear a floating interest rate equal to 90-day London Interbank Offered Rate (LIBOR) plus 1.6 percent.

Bank of the Ozarks issues trust preferred securities

Interests on the notes are indexed to the London Interbank Offered Rate, payable monthly (or quarterly) in arrears.

In reserve: Triple-X securitization represents an emerging class of structured products for life insurers

The interest rates of many ARMs aren't attuned to the prime interest rate but to bank deposits in specific regions of the country or to international indexes such as LIBOB (London InterBank Offered Rate).

Don't be alarmed if you have an ARM: homeowners with adjustable rate mortgages should carefully reassess their situation before refinancing

Rottenberg says the one-year loan, placed on behalf of a Virginia-based developer, was priced 225 basis points over the one-month London Interbank Offered Rate. He says the developer took the interim financing approach because he "required time to complete negotiations for the buyout of an existing tenant before determining the project's final configuration."

NYMC conversion cash

The scheme relied on applying the installment sale (see "Installment Sales" on page 67) and contingency sale rules to sales of foreign currency for cash or London interbank offered rate (Libor) notes (see "Security Definitions" on page 68).

A weapon from the past: a 67-year-old case proves the downfall of corporate tax shelters

Other Japan-related derivative products offered on the exchange are the Nikkei 225 futures and options, Nikkei 300 futures and options, Euroyen futures, Euroyen LIBOR (London InterBank Offered Rate) and TIBOR (Tokyo InterBank Offered Rate).

Singapore Exchange to launch 10-yr Japan bond futures, options

Traders wanting to buy Computer Associates' commercial paper on Monday had been seeking yields of 115 basis points, or 1.15 percentage points, over the London Interbank Offered Rate. In contrast, the identically rated commercial paper of Walt Disney Co.

COMPUTER ASSOCIATES CONFIRMS GOVERNMENT INQUIRIES

These concerns were manifested in additional premia on yen- and dollar-denominated LIBOR (London Interbank Offered Rate) deposits that Japanese banks had to pay to borrow money.

Treasury and Federal Reserve foreign exchange operations

"The use of derivative instruments in managing various financial risks is critical to the operations of many banks and other entities, and it is important that in this time of industry transition away from the London Interbank Offered Rate (LIBOR) that the accounting standards are proactive and meet the needs of the developing markets," the American Bankers Association wrote in its comment letter.

Comment letters back addition of benchmark interest rate for hedge accounting

The case is against two former Deutsche Bank (NYSE: DB) traders accused of rigging the London Interbank Offered Rate. The move comes after a Manhattan judge said the outcome of the case could depend on the evidence that the official could share.

DoJ seeking comments from British banking officials in Libor-rigging suit