Talk:London Interbank Offered Rate

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LIBOR is a borrowing rate, not a lending rate.

See BBA website: 1. http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=225&a=1416 2. http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=225&a=1413

59.180.108.22 06:51, 4 June 2007 (UTC)

That is true - but is a matter of semantics. In all deal there must be two parties, buy / sell lend / borrow, etc. The basis for calculation of the rate is as you say borrowing because it is created from the rates at which banks "could borrow funds". There will be another bank on the other side of that deal, so it can be thought of as a lending rate.

In its everyday retail usage, it is a widely used lending rate, because loans are calculated as BBA LIBOR plus a certain amount, that amount reflecting the risk inherent in the loan.

Joe kinincha 08:51, 11 July 2007 (UTC)

Contents

[edit] Non compounded

Because I'm not really a financial person, I couldn't figure out where in the article to put the fact that LIBOR rates are not compounded. This seems to be an important fact, because most interest rates (i think) are compounded. Perhaps the article should quote the following from the BBA LIBOR faq: "BBA LIBOR is not a compounded rate but is calculated on the basis of actual days in funding period/360. Therefore the formula is as follows: interest due = principal x (libor rate/100) x (actual no of days in interest period/360). Please note that for GBP) the calculation basis is 365 days." --Storkk 10:36, 31 July 2007 (UTC)

[edit] Unsecured loan vs repo

It may be helpful to add that LIBOR is the prevailing rate for an unsecured loan, and so it runs higher than the repo rate, which is the rate for a secured loan using the highest quality collateral. Finnancier (talk) 12:07, 15 December 2007 (UTC)

[edit] LIBOR... a British rate

Why is Libor allowed as a bench mark in US when the US Fed and Treasury have no control over it? —Preceding unsigned comment added by 67.160.175.149 (talk) 08:57, 27 December 2007 (UTC)

Freedom to contract? Superm401 - Talk 15:59, 31 December 2007 (UTC)

[edit] Euribor - is the statement correct

For the Euro, however, the usual reference rates are not the Euribor rates compiled by the European Banking Federation, from a larger bank panel. A Euro LIBOR does exist, but mainly for continuity purposes in swap contracts dating back to pre-EMU times.

I don't actually know anything about the subject, but from the context, it seems to me that the "not" in the first sentence should possibly be "now"? Hopefully, someone with actual knowledge can either correct it or correct me. --76.240.228.76 (talk) 18:11, 27 December 2007 (UTC)