The death of LIBOR

21 September 2018

 

LIBOR, the London Interbank Offered Rate, is the average of the estimated rates leading banks in London would be charged if they were to borrow from other banks. It is a theoretical rate and not based on actual transactions but it has served as a reference rate for trillions of dollars of floating rate securities, mortgage agreements, business loans and personal loans since 1986. Around ten years ago, it suffered...

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