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Terms Beginning with L
                       
                       
 Labor force participation rate   Leucopenia   London Good Delivery Standards  
 Large Deductible Policy   Leverage Adjusted Duration   Long-Term Total Return  
 Laws   Leverage Ratio   Longterm debt to Equity Ratio  
 LDL   LIBOR   Loss And LAE Ratio  
 Leach Stockpiles   Life Underwriting Income   Loss Reserve Development  
 Leaching   Life-of-Mine   Loss Reserves  
 Lead   LIFO   Losses  
 Lead Concentrate   Light Crude oil   Losses Incurred  
 Leased Department Retail   Light Sweet Crude Oil   Lysate  
 LED Light Emitting Diode   Lloyds   Lysates  
                 
                   
 
 
       
       
 

LIBOR

Financial Term


LIBOR stands for London Interbank Offered Rate and is the world's most widely used benchmark for short-term interest rates. It is the average interest rate at which major banks in London are willing to lend funds to one another for a term of one day to one year. The rate is calculated daily and is based on submissions from a panel of prime banks.

The most common use of LIBOR is as a benchmark for various financial instruments such as interest rate swaps, floating-rate loans, and adjustable-rate mortgages. These instruments are typically tied to LIBOR and use it as a reference rate to determine the interest rate applied to the principal amount. The rate also impacts borrowing costs for companies and governments that issue bonds or take out loans.

LIBOR is important because it provides consistency and transparency in the financial industry. It serves as a standard reference point for financial contracts and helps to ensure that pricing is fair and transparent. Additionally, it is used in the pricing and valuation of financial derivatives and plays a critical role in determining the value of these complex financial instruments.

However, there have been concerns about the reliability and accuracy of LIBOR over the years, which led to the development of alternative reference rates such as the Secured Overnight Financing Rate (SOFR) in the US. In 2021, the UK Financial Conduct Authority announced that it would no longer require or persuade banks to submit LIBOR rates after , and that LIBOR would be officially retired.


   
     

LIBOR

Financial Term


LIBOR stands for London Interbank Offered Rate and is the world's most widely used benchmark for short-term interest rates. It is the average interest rate at which major banks in London are willing to lend funds to one another for a term of one day to one year. The rate is calculated daily and is based on submissions from a panel of prime banks.

The most common use of LIBOR is as a benchmark for various financial instruments such as interest rate swaps, floating-rate loans, and adjustable-rate mortgages. These instruments are typically tied to LIBOR and use it as a reference rate to determine the interest rate applied to the principal amount. The rate also impacts borrowing costs for companies and governments that issue bonds or take out loans.

LIBOR is important because it provides consistency and transparency in the financial industry. It serves as a standard reference point for financial contracts and helps to ensure that pricing is fair and transparent. Additionally, it is used in the pricing and valuation of financial derivatives and plays a critical role in determining the value of these complex financial instruments.

However, there have been concerns about the reliability and accuracy of LIBOR over the years, which led to the development of alternative reference rates such as the Secured Overnight Financing Rate (SOFR) in the US. In 2021, the UK Financial Conduct Authority announced that it would no longer require or persuade banks to submit LIBOR rates after , and that LIBOR would be officially retired.


Related Financial Terms


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