Wednesday 10, October 2012 by Peter Beynon

Rebuilding confidence in LIBOR

LIBOR (London Inter-Bank Offered Rate) is meant to give an indication of at which interest rate banks can obtain lending from other banks. It is utilised by banks and businesses globally and is referenced in transactions worth more than $300 trillion.While many of these involve the exotic world of global markets, LIBOR is also used to calculate some mortgage rates and affects the investments of many pension funds.