Search results
Results from the WOW.Com Content Network
The London Interbank Offered Rate (LIBOR) came into widespread use in the 1970s as a reference interest rate for transactions in offshore Eurodollar markets. [25] [26] [27] In 1984, it became apparent that an increasing number of banks were trading actively in a variety of relatively new market instruments, notably interest rate swaps, foreign currency options and forward rate agreements.
A year later, it was reported in February 2012 that the US Department of Justice was conducting a criminal investigation into Libor abuse. [50] Among the abuses being investigated were the possibility that traders were in direct communication with bankers before the rates were set, thus allowing them an unprecedented amount of insider knowledge ...
A graphical view of the Cosmic Calendar, featuring the months of the year, days of December, and the final minute. The Cosmic Calendar is a method to visualize the chronology of the universe , scaling its current age of 13.8 billion years to a single year in order to help intuit it for pedagogical purposes in science education or popular science .
The LIBOR market model, also known as the BGM Model (Brace Gatarek Musiela Model, in reference to the names of some of the inventors) is a financial model of interest rates. [1]
A forward rate agreement's (FRA's) effective description is a cash for difference derivative contract, between two parties, benchmarked against an interest rate index. That index is commonly an interbank offered rate (-IBOR) of specific tenor in different currencies, for example LIBOR in USD, GBP, EURIBOR in EUR or STIBOR in SEK.
As LIBOR is based on unsecured loans made to banks, whereas SOFR is a loan secured by Treasuries, the Federal Reserve is required to add spread adjustments to SOFR (one for each tenor of LIBOR) to account for the difference in credit-risk between the rates. [2] The Act is seen as an important milestone in the transition away from LIBOR. [2]
This page was last edited on 20 September 2021, at 22:35 (UTC).; Text is available under the Creative Commons Attribution-ShareAlike 4.0 License; additional terms may apply.
Tom Hayes (born October 1979 [1]) is a former trader for UBS and Citigroup who was convicted for conspiracy to defraud and sentenced to 14 years in prison (reduced to 11 years on appeal) for conspiring with others to dishonestly manipulate the London Interbank Offered Rate [2] as part of the Libor scandal.