LIBOR
LIBOR stands for London International Bank Offer Rate.
This is the annual interest rate banks charge when lending money to one another in the International / eurocurrency markets.
This interest rate changes frequently and is determined by the supply and demand in the international market
This interest rate can be thought of as the interest rate for loans in the international Financial-Markets.
When a floating rate interest rate is applied to loans it if often quoted in terms of LIBOR.
These rates are published in 10 major currencies
On May 2013 this was reduced to just 6 currencies
All these rates are calculated daily and are published at 11am London time.
marketwatch.com/tools/markets/rates
7 Different Maturities
These interest rates are quoted for 7 different maturities
Overnight / Spot - next day
1 week -
1 month - The annual interest rate charged to borrow money for 1 month
2 month -
3 month - The annual interest rate charged to borrow money for 3 months
6 month - The annual interest rate charged to borrow money for 6 months
12 months -
USD LIBOR
The US dollar LIBOR rate gives the interest rate for borrowing dollar deposits held in banks outside the United States
Dollar deposits held in bank outside of the United States are referred to as EuroDollars
Will be discontinued at the end of June 2023
GBP LIBOR
UK Pound
Discontinued at the end of December 2021
EUR LIBOR
Euro
Discontinued at the end of December 2021
JPY LIBOR
Japanese Yen
Discontinued at the end of December 2021
CHF LIBOR
Swiss Franc
Discontinued at the end of December 2021
LIBOR Yield Curve
This is a Forward/Implied yield curve
You can get LIBOR futures
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