LIBOR Flat

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Dictionary Says

Definition of 'LIBOR Flat'

An interest rate benchmark used to establish the floating interest rate that is paid on the notional principal in an interest-rate swap. LIBOR flat has no spread added to it and represents the best interest rate available in the current market. It is the most common reference on which other interest rates are based. 
Investopedia Says

Investopedia explains 'LIBOR Flat'

LIBOR is the London Interbank Offered Rate, an interest rate at which banks can borrow money from each other. The rate changes daily. Often, a spread is added to LIBOR. This is an additional percentage of interest that reflects the risk of lending to a particular borrower. LIBOR flat has no spread added to it and represents the best interest rate available in the current market. It is the most common reference on which other interest rates are based.

Search results for

'LIBOR Flat'

  • Introduction To Counterparty Risk

    http://www.investopedia.com/articles/optioninvestor/11/understanding-counterparty-risk.asp
    ... referenced to compute the payments. To keep the example simple, we assume the
    LIBOR/swap rate curve is flat at 4.0%. In other words, when ...

  • When Wholesale Funding Goes Bad

    http://www.investopedia.com/articles/economics/09/when-wholesale-funding-goes-bad.asp
    ... For commercial finance companies, a flat yield curve can be unprofitable, because ...
    or when short-term borrowing rates (as represented by LIBOR) skyrocket due to ...

  • CFA Level 1 Study Guide - Fixed Income Investments - The Term ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-term-structure.asp
    ... of a Taxable Security; 14.34 London Interbank Offer Rate (LIBOR); 14.35 Bond
    Valuation Basics; 14.36 Cash Flow; 14.37 Bond Value and ...

  • Managing Interest Rate Risk

    http://www.investopedia.com/articles/optioninvestor/08/manage-interest-rate-risk.asp
    ... would be priced at different rates, unless the term structure is flat. ... in the benchmark
    interest rate, such as the London Interbank Offered Rate (LIBOR), for a ...

  • CFA Level 1 Study Guide - Derivatives - Closing and Terminating a ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/closing-terminating-futures-position.asp
    ... of a Taxable Security; 14.34 London Interbank Offer Rate (LIBOR); 14.35 Bond
    Valuation Basics; 14.36 Cash Flow; 14.37 Bond Value and ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Yield Curves ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/yield-curves.asp
    ... of a Taxable Security; 14.34 London Interbank Offer Rate (LIBOR); 14.35 Bond
    Valuation Basics; 14.36 Cash Flow; 14.37 Bond Value and ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard VI-C ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-referral-fees.asp
    ... of a Taxable Security; 14.34 London Interbank Offer Rate (LIBOR); 14.35 Bond
    Valuation Basics; 14.36 Cash Flow; 14.37 Bond Value and ...

  • CFA Level 1 Study Guide - Quantitative Methods - Regression ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/regression-analysis.asp
    ... of a Taxable Security; 14.34 London Interbank Offer Rate (LIBOR); 14.35 Bond
    Valuation Basics; 14.36 Cash Flow; 14.37 Bond Value and ...

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