LIBOR
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | London Interbank Offered Rate |
|---|---|
| Categories | Business & Finance |
LIBOR stands for London Interbank Offered Rate, a bond & Fixed-Income abbreviation.
Former benchmark interest rate representing what major banks said they would pay to borrow from each other unsecured, published daily for several currencies and maturities. For decades it underpinned hundreds of trillions of dollars of loans, mortgages and derivatives.
Example: Legacy contracts that referenced three-month LIBOR were switched to SOFR plus a fixed spread adjustment.
Usage notes
A rate-rigging scandal that broke in 2012 led to billions of dollars in fines for banks and ultimately to the benchmark's retirement. Most LIBOR settings ended after December 31, 2021, and the last synthetic US dollar settings were published until September 30, 2024. Replacements include SOFR, SONIA and €STR. Pronounced "LIE-bor."
Related abbreviations
More bond & Fixed-Income abbreviations
- FRN – Floating-rate note
- GO – General obligation bond
- HY – High yield
- IG – Investment grade
- IRS – Interest rate swap
- JGB – Japanese government bond
- MBS – Mortgage-backed security
- MTN – Medium-term note
- NRSRO – Nationally recognized statistical rating organization
- OAS – Option-adjusted spread
- OAT – Obligation assimilable du Trésor (French Treasury bond)
- OIS – Overnight index swap