London Interbank Offer Rate

(redirected from London Inter-Bank Offer Rate)

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 ?
25% over Libor, the London Inter-bank offer rate while the total cost of borrowing after hedging will come around 6% a year.
These participants may be encouraged by recent movements in the spread between the London Inter-Bank Offer Rate (LIBOR) and the short-term Treasury rate.
The new $500 million line of credit bears interest at the London Inter-Bank Offer Rate (LIBOR) plus a spread of 40 to 100 basis points including a facility fee which is determined based on our credit ratings from Standard & Poor's and Moody's Investors Service, Inc.
The dividend paid on the 'B' shares has been set to 70 per cent of the six month London Inter-Bank Offer Rate, which yesterday stood at 4.
Both issues are callable after 10 years and, if not called, the interest rate under the subordinated notes and the dividend under the preference shares will be stepped up by 100 basis points over the initial credit spread on a London inter-bank offer rate (LIBOR) basis, and the base rate will move from the fixed rate to floating three-month LIBOR.
Signs of increasing financial strains included the widening spread between the London Inter-Bank Offer Rate (LIBOR) and a comparable short-term Treasury bill.
The interest rate on the facility is floating and is based on the London Inter-Bank Offer Rate ("LIBOR") plus 1.
In order to minimize the Company's floating interest rate exposure, in March 2003, AMAC entered into a five-year London Inter-Bank Offer Rate ("LIBOR") interest rate swap with an annual fixed interest rate payable of 3.
The Company's interest rate on the facility is floating and is based on the London Inter-Bank Offer Rate ("LIBOR") plus 1.
The loans are priced off of the 30-day London Inter-Bank Offer Rate ("LIBOR"), providing borrowers with low-cost interim financing.

Full browser ?