LIBOR: Copy, customize, and use instantly
Introduction
The term "LIBOR" refers to the London Interbank Offered Rate, which is the average interest rate at which major global banks are willing to lend to each other in the short-term wholesale money market. It is essential for determining the cost of borrowing for financial products such as loans, derivatives, and bonds. LIBOR has been used widely in financial contracts but is being replaced by alternative reference rates in certain jurisdictions.
Below are various examples of how "LIBOR" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "LIBOR" as an interest rate benchmark
This definition ties "LIBOR" to its function as an interest rate benchmark used globally for financial transactions.
"LIBOR" means the rate at which a panel of major international banks offer unsecured loans to one another in the London interbank market, published daily by the British Bankers' Association.
Definition of "LIBOR" as a reference rate for loans
This definition connects "LIBOR" to its use in loan agreements for determining interest payments.
"LIBOR" refers to the interest rate set by the London Interbank Offered Rate, which is used as a benchmark to calculate the interest rate for loans, based on the term of the loan and the relevant currency.
Definition of "LIBOR" as a reference rate for derivatives
This definition links "LIBOR" to financial derivative contracts.
"LIBOR" means the daily average of the interest rates at which major global banks offer to lend to each other on an unsecured basis, often used as the reference rate for pricing derivatives such as swaps and futures.
Definition of "LIBOR" as a market rate for bonds
This definition applies "LIBOR" to fixed-income securities and bonds.
"LIBOR" refers to the interest rate used in bond issuance agreements as a reference for calculating coupon payments, based on the lending rates between international banks in the London interbank market.
Definition of "LIBOR" as a contractual rate
This definition ties "LIBOR" to its use in specific contractual obligations.
"LIBOR" means the rate published by the British Bankers' Association, representing the average rate at which major global banks lend to each other, used as a reference in financial agreements, including loan contracts and derivatives.
Definition of "LIBOR" as a floating rate
This definition connects "LIBOR" to floating rate loans and instruments.
"LIBOR" refers to the benchmark interest rate that fluctuates daily, based on market conditions, used as a reference for setting floating interest rates on loans, securities, and derivatives.
Definition of "LIBOR" as a benchmark for financial markets
This definition links "LIBOR" to its use in the broader financial market for determining market rates.
"LIBOR" means the average rate of interest at which major international banks lend to one another in the interbank market, serving as a benchmark for the pricing of a wide range of financial instruments and contracts.
Definition of "LIBOR" as a rate under financial regulation
This definition applies "LIBOR" to regulatory frameworks in finance.
"LIBOR" refers to the interest rate published by the British Bankers' Association, used as a reference in financial regulations, impacting lending, investment, and reporting practices across the global financial system.
Definition of "LIBOR" as a historical reference rate
This definition ties "LIBOR" to its past use before the transition to alternative reference rates.
"LIBOR" means the interest rate calculated from the daily submissions of major international banks, historically used as a benchmark for various financial instruments, until it was replaced by alternative reference rates.
Definition of "LIBOR" as an alternative reference rate transition
This definition links "LIBOR" to the transition to new reference rates, such as SOFR.
"LIBOR" refers to the London Interbank Offered Rate, which has historically been used as a reference rate but is in the process of being replaced by alternative reference rates, such as the Secured Overnight Financing Rate (SOFR) in the United States.
Definition of "LIBOR" as a floating rate note index
This definition connects "LIBOR" to floating rate notes.
"LIBOR" means the rate used as the index for floating rate notes, determining interest payments based on the fluctuations in interbank lending rates in the London market.
Definition of "LIBOR" as a variable rate in loan agreements
This definition applies "LIBOR" to loan agreements where the rate adjusts periodically.
"LIBOR" refers to the benchmark interest rate used in loan agreements to determine the variable rate of interest, with adjustments made periodically in line with changes in the London interbank lending market.
Definition of "LIBOR" as a rate for foreign exchange transactions
This definition ties "LIBOR" to its use in foreign exchange market pricing.
"LIBOR" means the interest rate used as a reference for determining the pricing and valuation of foreign exchange contracts, based on lending rates between international banks.
Definition of "LIBOR" as a credit risk indicator
This definition connects "LIBOR" to its role in indicating credit risk in the financial market.
"LIBOR" refers to the interest rate at which banks lend to each other in the short-term money market, which can serve as an indicator of credit risk and liquidity conditions in the banking sector.
Definition of "LIBOR" as an alternative to prime rate
This definition links "LIBOR" to its use as an alternative to prime lending rates in certain markets.
"LIBOR" means the rate used as an alternative reference to the prime lending rate, often applied in international loan agreements, with an adjustment made based on credit risk and market conditions.
Definition of "LIBOR" as a currency-specific reference rate
This definition ties "LIBOR" to its role in different currency markets.
"LIBOR" refers to the interest rate applicable to specific currencies, such as USD LIBOR, EUR LIBOR, or GBP LIBOR, each based on the lending rates of banks in their respective markets.
Definition of "LIBOR" as an interbank lending rate
This definition connects "LIBOR" to its core function as an interbank lending rate.
"LIBOR" means the rate at which major international banks lend to one another in the short-term unsecured loan market, published daily and used as a reference rate for a variety of financial products.
Definition of "LIBOR" as a transitional rate
This definition ties "LIBOR" to its transitional phase, where the market moves towards other benchmarks.
"LIBOR" refers to the transitional benchmark interest rate, historically used for pricing financial products, now being replaced by alternative reference rates such as SOFR and SONIA due to market reforms.
Definition of "LIBOR" as a risk premium indicator
This definition connects "LIBOR" to its role as an indicator of market risk.
"LIBOR" refers to the rate reflecting the cost of borrowing in the interbank market, which incorporates the risk premium for lending to banks, and serves as a benchmark for various financial instruments.
Definition of "LIBOR" as a reference for syndicated loans
This definition ties "LIBOR" to its role in syndicated loan agreements.
"LIBOR" means the interest rate used as the benchmark in syndicated loan agreements, determining the floating interest rate based on interbank borrowing costs.
Definition of "LIBOR" as a reference rate for credit derivatives
This definition connects "LIBOR" to pricing and structuring of credit derivatives.
"LIBOR" refers to the benchmark interest rate used to price and structure credit derivatives, including credit default swaps and collateralized debt obligations.
Definition of "LIBOR" as a rate for adjustable-rate mortgages
This definition links "LIBOR" to adjustable-rate mortgage (ARM) products.
"LIBOR" means the interest rate used as the benchmark for determining the interest rate on adjustable-rate mortgages, subject to periodic adjustments based on interbank lending rates.
Definition of "LIBOR" as a key economic indicator
This definition ties "LIBOR" to its role as an indicator of economic conditions.
"LIBOR" refers to the rate at which banks lend to one another, often used as an indicator of overall liquidity and economic health within the banking system.
Definition of "LIBOR" as a liquidity risk measure
This definition connects "LIBOR" to liquidity risk assessments.
"LIBOR" means the rate at which banks are willing to lend to each other in the short-term unsecured market, and is often viewed as a measure of liquidity risk in the financial system.
Definition of "LIBOR" as a reference rate for international transactions
This definition links "LIBOR" to its use in cross-border financial transactions.
"LIBOR" refers to the interest rate used as a reference in international transactions, particularly in loans and derivatives, to ensure consistency in pricing across global markets.
Definition of "LIBOR" as a rate for variable-rate loans
This definition ties "LIBOR" to the pricing of variable-rate loans.
"LIBOR" means the benchmark rate used to determine the interest rate on variable-rate loans, adjusted periodically based on market conditions.
Definition of "LIBOR" as a rate for investment portfolio benchmarks
This definition connects "LIBOR" to investment portfolio performance.
"LIBOR" refers to the rate used as a benchmark for evaluating the performance of investment portfolios, often applied in the context of fixed income and money market instruments.
Definition of "LIBOR" as an alternative to the central bank rate
This definition links "LIBOR" to an alternative to official central bank rates in market pricing.
"LIBOR" means the rate at which banks lend to each other, often used as an alternative to the official central bank rate, in the pricing of financial instruments.
Definition of "LIBOR" as a global lending benchmark
This definition ties "LIBOR" to its use as a global lending benchmark across multiple financial products.
"LIBOR" refers to the benchmark interest rate used globally by financial institutions for pricing loans, derivatives, and other financial products.
Definition of "LIBOR" as a measure of creditworthiness
This definition connects "LIBOR" to its indirect reflection of the creditworthiness of banks.
"LIBOR" means the interest rate at which banks lend to one another, reflecting the perceived creditworthiness of the banking sector and the risk involved in unsecured interbank loans.
Definition of "LIBOR" as a reference for foreign currency loans
This definition links "LIBOR" to foreign currency-denominated loans.
"LIBOR" refers to the interest rate used as the benchmark for foreign currency loans, where the rate is set based on the relevant currency and its corresponding interbank borrowing rate.
Definition of "LIBOR" as a risk premium benchmark
This definition ties "LIBOR" to the risk premium component in lending.
"LIBOR" means the rate at which major international banks lend to one another, which includes a risk premium reflecting credit risk and liquidity in the banking sector.
Definition of "LIBOR" as a rate in repo transactions
This definition connects "LIBOR" to repurchase agreements (repo).
"LIBOR" refers to the benchmark rate applied to repurchase agreements, determining the interest rate for short-term secured lending transactions.
Definition of "LIBOR" as a historical lending benchmark
This definition links "LIBOR" to its past role as the primary lending rate.
"LIBOR" means the historical reference rate used by banks to determine lending rates, now being gradually replaced by alternative reference rates due to reforms in the global financial markets.
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