Question:

What is 1-Month LIBOR index rate?

Answer:

The 1-Month LIBOR index rate is a standard index posted on the Wall Street. LIBOR stands for London InterBank Offered Rate - the interest rate that London banks use to extend money to one another. It is also a standard index used by the US financial market.

The Current 1-Month LIBOR Index Rate

As of May12, 2008, the 1-month London InterBank Offered Rate (LIBOR) index value fluctuates around 2.80%. In comparison, last year's value of the 1-month LIBOR index is almost twice the current one - around 5.30%.

The 1-month London InterBank Offered Rate (LIBOR) is a traditional ARM index - that is, there are many adjustable rate mortgage loans based on it. However, beside consumer mortgage credit, there are a number of financial corporate transactions also based on the 1-month LIBOR.

Beside the 1-month London InterBank Offered Rate (LIBOR) index, there are also 3-month, 6-month and 1-year LIBOR indexes, also very popular in the financial world. There are many LIBOR rates, reported every month in many currencies.

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