Libor
From Reuters Financial Glossary
(Redirected from The London Interbank Offered Rate)
Synonym: The London Interbank Offered Rate
One of the most important money market rates at which banks lend funds to each other. Three-month Libor is one of the most widely used interest rates in the fixed-income universe. It is often the base rate for bond issues from corporates and countries, both fixed and floating rate notes. The coupon on floating rate notes is often a fixed number of basis points above three-month Libor. Three-month Libor is also the key rate for the floating rate leg of interest-rate swaps. Eurodollar futures, the most traded futures in the world, are based on three-month Libor.
