LIBOR stands for London Interbank Offered Rate (pronounced LIE-bore).  LIBOR is a daily rate based on the interest rates at which banks lend unsecured funds to other banks in the London wholesale interbank market.

LIBOR rates are widely used as a reference rate for financial instruments such as:

• interest rate swaps
• floating rate notes
• syndicated loans
• adjustable rate mortgages
• currencies, especially the US Dollar

LIBOR is published by the British Bankers Association (BBA) shortly after 11:00 each day, London time.  The actual rate at which banks will lend to one another will, however, continue to vary throughout the day.