1) what is libor ???
devised in 1980
LONDON INTERBANK offered rate or libor is an average of how much it would cost banks to borrow from one another
set each day and it effect the cost of everything from business account draft to credit card to mortgages
it is derived from survey of banks by british banker association
it is not a actual transaction
it is done in dollar euro yen swiss frank
2) why is the rate important $$$
trillions of dollars of bond derivatives and other financial transactions are bench marked to libor
manipulating by even 0.01 % could lead to millions of dollar in profit or losss
3) alternative
10 years usa treasuries bonds or other such liquid securities
4) what is happening now ???
barcley in turmoil regulators are probing USB ,HSBC,ROYAL BANK OF SCOTLAND
5 ) SHOULD WE WORRIED IN INDIA
INDIAN CORPOARTES who borrowed based on libor need not to worry
a benchmark will remain at all times since more then $350 trillion worth securities trade with libor as benchmark
devised in 1980
LONDON INTERBANK offered rate or libor is an average of how much it would cost banks to borrow from one another
set each day and it effect the cost of everything from business account draft to credit card to mortgages
it is derived from survey of banks by british banker association
it is not a actual transaction
it is done in dollar euro yen swiss frank
2) why is the rate important $$$
trillions of dollars of bond derivatives and other financial transactions are bench marked to libor
manipulating by even 0.01 % could lead to millions of dollar in profit or losss
3) alternative
10 years usa treasuries bonds or other such liquid securities
4) what is happening now ???
barcley in turmoil regulators are probing USB ,HSBC,ROYAL BANK OF SCOTLAND
5 ) SHOULD WE WORRIED IN INDIA
INDIAN CORPOARTES who borrowed based on libor need not to worry
a benchmark will remain at all times since more then $350 trillion worth securities trade with libor as benchmark
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