LIBOR Rate definition: Copy, customize, and use instantly
Introduction
The term "LIBOR Rate" refers to the London Interbank Offered Rate, a benchmark interest rate that represents the rate at which major global banks lend to one another on an unsecured basis. It serves as a reference rate for various financial instruments, including loans, derivatives, and bonds.
Below are various examples of how "LIBOR Rate" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "LIBOR Rate" as the benchmark lending rate
This definition ties "LIBOR Rate" to the general lending market.
"LIBOR Rate" refers to the interest rate at which leading banks in the London interbank market lend funds to other financial institutions, serving as a widely used reference rate for short-term borrowing.
Definition of "LIBOR Rate" as the reference for financial products
This definition links "LIBOR Rate" to financial products.
"LIBOR Rate" means the rate used as a reference for pricing and determining interest rates on various financial instruments, including loans, bonds, and derivatives, based on the rates at which banks lend to each other.
Definition of "LIBOR Rate" as applied to floating interest rates
This definition connects "LIBOR Rate" to floating rates.
"LIBOR Rate" refers to the rate used to calculate floating interest rates on loans, derivatives, and other financial instruments, with adjustments made periodically based on the current LIBOR.
Definition of "LIBOR Rate" in the context of loan agreements
This definition applies "LIBOR Rate" to loan arrangements.
"LIBOR Rate" means the rate established by the London Interbank Offered Rate, used as a basis for determining the interest rate charged on loans under this agreement, adjusted as per the relevant period.
Definition of "LIBOR Rate" as a global interest rate benchmark
This definition ties "LIBOR Rate" to its role as a global benchmark.
"LIBOR Rate" refers to the globally recognized interest rate benchmark, established by the London Interbank Market, which is utilized across international financial markets to determine the cost of borrowing.
Definition of "LIBOR Rate" for derivative transactions
This definition links "LIBOR Rate" to derivatives.
"LIBOR Rate" means the interest rate used in derivative contracts, such as swaps and futures, to determine the cost of borrowing or lending based on the LIBOR as the underlying rate.
Definition of "LIBOR Rate" as it relates to interest rate swaps
This definition connects "LIBOR Rate" to interest rate swaps.
"LIBOR Rate" refers to the rate used in interest rate swap agreements, where one party pays a fixed rate and the other pays a floating rate based on the LIBOR.
Definition of "LIBOR Rate" as applied to bond pricing
This definition applies "LIBOR Rate" to bond markets.
"LIBOR Rate" means the rate used as a benchmark in the pricing of bonds, particularly those with floating interest rates, where the coupon payments are determined by the LIBOR plus a margin.
Definition of "LIBOR Rate" as a reference for corporate loans
This definition ties "LIBOR Rate" to corporate lending.
"LIBOR Rate" refers to the rate used in determining the interest rate for corporate loans, where the rate is often set as the LIBOR plus a specified spread.
Definition of "LIBOR Rate" in the context of syndicated loans
This definition connects "LIBOR Rate" to syndicated lending.
"LIBOR Rate" means the rate at which syndicated loans are priced, where the interest on the loan is typically set as LIBOR plus a margin based on the borrower’s creditworthiness.
Definition of "LIBOR Rate" for determining variable rates
This definition links "LIBOR Rate" to variable interest rates.
"LIBOR Rate" refers to the rate used to calculate variable interest rates on loans and credit facilities, which change periodically based on fluctuations in the LIBOR.
Definition of "LIBOR Rate" as related to currency swaps
This definition applies "LIBOR Rate" to currency swaps.
"LIBOR Rate" means the interest rate used in currency swap agreements to determine the floating rate payments in the swap, with the rate based on the LIBOR of the relevant currency.
Definition of "LIBOR Rate" for cross-currency transactions
This definition connects "LIBOR Rate" to cross-currency dealings.
"LIBOR Rate" refers to the rate used in cross-currency transactions, where the interest rate for each currency is based on the LIBOR rate for that currency, adjusted for the currency swap terms.
Definition of "LIBOR Rate" as applied to the refinancing of debt
This definition links "LIBOR Rate" to debt refinancing.
"LIBOR Rate" refers to the rate used as a benchmark for determining the cost of refinancing debt, where interest payments are set based on the LIBOR plus a specified margin.
Definition of "LIBOR Rate" in relation to hedging strategies
This definition ties "LIBOR Rate" to financial hedging.
"LIBOR Rate" means the rate used as a reference for financial hedging transactions, where the interest rate of a hedging product is tied to changes in the LIBOR over time.
Definition of "LIBOR Rate" for cash management agreements
This definition connects "LIBOR Rate" to cash management.
"LIBOR Rate" refers to the rate used in cash management agreements to set the interest rates on deposits or loans, with adjustments made according to fluctuations in the LIBOR.
Definition of "LIBOR Rate" in the context of short-term lending
This definition applies "LIBOR Rate" to short-term finance.
"LIBOR Rate" means the rate applied to short-term loans, with interest rates typically set as the LIBOR rate plus a margin determined by the borrower’s risk profile.
Definition of "LIBOR Rate" as part of an investment strategy
This definition links "LIBOR Rate" to investment decisions.
"LIBOR Rate" refers to the rate used by investors in structuring investment products, where returns are often linked to the LIBOR as an underlying index.
Definition of "LIBOR Rate" as applied to commercial paper
This definition ties "LIBOR Rate" to the commercial paper market.
"LIBOR Rate" means the rate used in the pricing of commercial paper, where the interest rate on short-term debt instruments is set relative to the LIBOR.
Definition of "LIBOR Rate" for structured finance products
This definition connects "LIBOR Rate" to structured finance.
"LIBOR Rate" refers to the rate used in structured finance transactions, such as collateralized debt obligations (CDOs) or asset-backed securities (ABS), where interest payments are based on the LIBOR rate.
Definition of "LIBOR Rate" for trade finance
This definition applies "LIBOR Rate" to trade financing.
"LIBOR Rate" means the rate used in determining the cost of financing trade transactions, where interest rates on loans or facilities are tied to LIBOR plus a spread.
Definition of "LIBOR Rate" in relation to credit facilities
This definition ties "LIBOR Rate" to credit lines.
"LIBOR Rate" refers to the rate used to determine the interest rate charged on credit facilities, including revolving lines of credit, where the interest rate is typically based on LIBOR plus a margin.
Definition of "LIBOR Rate" for determining the cost of borrowing
This definition connects "LIBOR Rate" to borrowing costs.
"LIBOR Rate" means the rate used to determine the cost of borrowing in financial markets, where the rate is often a key reference for loans and credit agreements.
Definition of "LIBOR Rate" for the determination of margin loans
This definition links "LIBOR Rate" to margin lending.
"LIBOR Rate" refers to the rate used in margin loans, where interest rates on borrowed funds are based on the LIBOR rate plus a defined margin, reflecting the borrower’s credit risk.
Definition of "LIBOR Rate" in the context of capital markets
This definition connects "LIBOR Rate" to capital market transactions.
"LIBOR Rate" means the rate used in capital markets transactions, such as in the issuance of bonds and other debt securities, where the coupon rates are typically determined based on the LIBOR rate.
Definition of "LIBOR Rate" as applied to financial instruments
This definition ties "LIBOR Rate" to various financial instruments.
"LIBOR Rate" refers to the rate used to price a wide range of financial instruments, including futures, options, and other derivatives, based on the interbank lending rate.
Definition of "LIBOR Rate" for pricing credit derivatives
This definition links "LIBOR Rate" to credit derivatives.
"LIBOR Rate" means the rate used to price credit derivatives, such as credit default swaps (CDS), where the floating leg of the swap is often determined by the LIBOR rate.
Definition of "LIBOR Rate" as the basis for mortgage rates
This definition connects "LIBOR Rate" to real estate finance.
"LIBOR Rate" refers to the rate used in the determination of mortgage interest rates, particularly for adjustable-rate mortgages (ARMs), where the rate is often tied to the LIBOR index.
Definition of "LIBOR Rate" for international financial transactions
This definition applies "LIBOR Rate" to cross-border finance.
"LIBOR Rate" refers to the rate used as a benchmark in international financial transactions, particularly in cross-border lending and borrowing, where it sets the base for interest rates.
Definition of "LIBOR Rate" in relation to market fluctuations
This definition connects "LIBOR Rate" to market conditions.
"LIBOR Rate" means the interest rate that fluctuates in response to changes in the supply and demand for short-term loans in the interbank market, providing a measure of market conditions.
Definition of "LIBOR Rate" for private sector financing
This definition links "LIBOR Rate" to private sector transactions.
"LIBOR Rate" refers to the rate used as the benchmark in private sector financing arrangements, particularly in the structuring of loan facilities and bond issuances.
Definition of "LIBOR Rate" as applied to the LIBOR transition
This definition applies "LIBOR Rate" to transition planning.
"LIBOR Rate" means the interest rate previously used as the global benchmark for interest rates, which is transitioning to alternative reference rates, such as SOFR, due to regulatory changes.
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