LIBOR rate

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Tracie Barsamian
Tracie Barsamian's picture
LIBOR rate

Hi Jason,

Can you please explain why the LIBOR rate is so widely used?

Thanks

Jason Pride
Jason Pride's picture

Hi Tracie,

LIBOR is the most commonly used rate because it averages rates and terms across a number of currencies and ranges. This gives a very good average in terms of the global market for interest rates. Since larger international firms and banks use this you will find that smaller local firms follow suit in order to maintain a level of consistency.