Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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.

More Glossary Terms Beginning with L

Labor force participation rate
is the labor force as a percent of the population.

Economy Term Letter: L
Large Deductible Policy
An insurance policy where the customer assumes at least $25,000 or more of each loss. Typically, the insurer is responsible for paying the entire loss under those policies and then seeks reimbursement from the insured for the deductible amount.

Insurance Term Letter: L
Laws
means all federal, state, provincial, regional, territorial, local and other laws, statutes, ordinances, regulations, rules, executive orders, and other official releases of or by any government, or any authority, department or agency thereof, in any jurisdiction in which the Services are provided or received, including the United States Securities and Exchange Commission and the Public Company Ac

Economy Term Letter: L
LDL
Low-density lipoprotein.

Health Care Term Letter: L
Leach Stockpiles
A quantity of leachable ore placed on a leach pad or in another suitable location that permits leaching and collection of solutions that contain solubilized metal. Iron & Steel Industry Operating Statistics

Manufacturing Term Letter: L
Leaching
A chemical process by which a soluble metallic compound is extracted from ore by dissolving the metals in a solvent. Iron & Steel Industry Operating Statistics

Manufacturing Term Letter: L
Lead
A heavy, soft, malleable, ductile but inelastic bluish-white metallic element found mostly in combination with zinc and used in pipes, cable sheaths, batteries, solder, type metal, and shields against radioactivity.

Manufacturing Term Letter: L
Lead Concentrate
Product of the flotation process which separates the lead and other minerals from the ore to form a concentrate with a lead content typically ranging between 50% to 60%.

Manufacturing Term Letter: L
Leased Department Retail
Leased departments are broadly defined as operations of one company conducted within the establishment of another company. Typical examples may include jewelry counters or optical centers within department stores.

Economy Term Letter: L
LED Light Emitting Diode
Light Emitting Diode. A semiconductor device which converts electricity into light.

Manufacturing Term Letter: L
Leucopenia
A low white blood cell count, or leucopenia, is a decrease in disease-fighting cells (leukocytes) circulating in your blood.

Health Care Term Letter: L
Leverage Adjusted Duration
Duration is a measure of the expected period over which a bonds principal and interest will be paid, and consequently is a measure of the sensitivity of a bonds or bond Funds value to changes when market interest rates change. Generally, the longer a bonds or Funds duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account t

Financial Term Letter: L

More in this Category

Acquired Fund Fees and Expenses
fees and expenses charged by other investment companies in which the Fund invests a portion of its assets.

Financial Term
Acquisition
A business acquisition. The acquiring company records at its cost the acquired assets less liabilities assumed. The reported income of an acquiring company includes the operations of the acquired company from the date of acquisition.

Financial Term
Acquisition Proposal
means any merger, amalgamation, take-over bid, tender offer, arrangement, recapitalization, liquidation, dissolution, share exchange, material sale of assets (or any lease, long term supply agreement or other arrangement having the same economic effect as a material sale of assets) representing greater than 20% of the fair market value of the Arrangement, any sale of more than 20% of any class of

Financial Term
Adjusted Average Cardmember Loans
Represents average cardmember loans on an owned or managed basis, as applicable, excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans on an owned or managed basis, as applicable.

Financial Term
ADR American Depositary Receipt
represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. ADRs enable U.S. investors to buy shares in foreign companies without the inconveniences of cross-border & cross-currency transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.

Financial Term
ADS American Depositary Share
represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. American Depositary Share representing one underlying Ordinary Share. ADS enable U.S. investors to buy shares in foreign companies without the inconveniences of cross-border & cross-currency transactions. ADS carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of U

Financial Term
Advised Lines of Credit
An authorization which specifies the maximum amount of a credit facility the Firm has made available to an obligor on a revolving but non-binding basis. The borrower receives written or oral advice of this facility. The Firm may cancel this facility at any time.

Financial Term
AICPA
American Institute of Certified Public Accountants

Financial Term
Allowance For Credit Losses
includes the allowance for loan and lease losses and the reserve for unfunded lending commitments, represents managements estimate of probable losses inherent in the Corporations lending activities. The allowance for loan and lease losses and the reserve for unfunded lending commitments exclude amounts for loans and unfunded lending commitments accounted for under the fair value option as the fair

Financial Term
Allowance For Loan and Lease Losses
The allowance for loan and lease losses represents the estimated probable credit losses in funded consumer and commercial loans and leases while the reserve for unfunded lending commitments, including standby letters of credit (SBLCs) and binding unfunded loan commitments, represents estimated probable credit losses on these unfunded credit instruments based on utilization assumptions. Credit expo

Financial Term
Alt-A Mortgage Loans
Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (I) limited documentation; (II) high combined-loan-to-value ("CLTV") ratio; (III) loans secured by non-owner occupied properties; or (IV) debt-to-income ratio above n

Financial Term
Amortization
A charge against the companys earnings that represents the write off of intangible assets over the projected life of the assets. Cash Flow

Financial Term