Libor News, Articles and Videos Libor is an acronym that stands for London Interbank Offered Rate. This interest rate is set by a committee of banks and is used as a benchmark for financial instruments such as mortgages, loans and credit cards. It is the most widely used interest rate in the world and is a key component of the global financial system. The rate is determined by a daily survey of leading banks, which quote the rates at which they are willing to lend to one another. This rate influences borrowing costs for millions of people and companies around the world. In recent years, Libor has been the focus of several scandals, as banks were found to have manipulated the rate for their own profit. As a result, regulators have proposed a new system to replace Libor, which is set to take effect in 2021. In this article, we will take a look at the history of Libor, how it is calculated, and how it affects the global economy.
Much of the recent surge in Libor, which is set to be phased out on June 30, has been driven by expectations for Fed policy tightening. Traders not only expect a higher terminal rate, but the Fed to stay at that level for a longer period than previously expected.
A crucial step in the final transition to USD SOFR is the physical conversion of outstanding cleared OTC swaps from USD LIBOR to USD SOFR. Clearing Houses (CCPs) provide this as a service to cleari…
The Depository Trust & Clearing Corporation (DTCC), today announced that it has launched its new LIBOR Benchmark Replacement Index solution.