The London Interbank market is where banks often go to get their loans from Peter to make their loans to Paul.
LIBOR rates are short-term fixed rates quoted for interest periods of, typically, one, two, three and six months; overnight and 12-month interest periods are also available. Insofar as these rates are set for discrete periods of time they are good for the duration of those periods and are reset at the end of those periods to the then available rates reflecting market conditions. Over the years there has been some evolution on how the rates are quoted in the market. This video reviews a history of LIBOR, discusses ICE LIBOR and payment conventions, and talks about what is wrong with LIBOR.
Runtime: 24 minutes
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