Libor Rates

[Martinghoul]

OK, last comment: My info, which I get at 11.32 each morning says: 3month Euro Libor, 3month Sterling libor and 3month USD Libor. Purely academic but is Euro Libor the same as Euribor?

No, these are different rates (today 3m EUR LIBOR was 94bps vs 3m EURIBOR of 95.4bps). The rates are published by different organizations (BBA vs EBF), are produced by posing a different question to a different panel of banks. There's also a few more technical differences, such as number of decimal places in the published rate, as well as the threshold for eliminating highest/lowest contributed rates. The one you should care about, as it's used more commonly, is EURIBOR.

 

[raysor]

No, these are different rates (today 3m EUR LIBOR was 94bps vs 3m EURIBOR of 95.4bps). The rates are published by different organizations (BBA vs EBF), are produced by posing a different question to a different panel of banks. There's also a few more technical differences, such as number of decimal places in the published rate, as well as the threshold for eliminating highest/lowest contributed rates. The one you should care about, as it's used more commonly, is EURIBOR.

OK, thanks. You obviously know what you are talking about!

 

[tripleogstar]

there are also only 16banks on the panel for LIBOR and something like over 40 for EURIBOR

 

[arabianights]

No, the process is different for EURIBOR and LIBOR. EURIBOR is done using rates submitted by banks to TARGET and then published on Reuters-Telerate, which is why it's sorta Reuters-centric. LIBOR, on the other hand, is actually compiled daily by the BBA and they publish it onwards.

I was so distressed that I could be wrong in posting something on trade2win that I have got the BBA to lie on my behalf and say that Reuters do it...

 

[raysor]

do I sense some splitting of hairs here?

 

[Martinghoul]

I was so distressed that I could be wrong in posting something on trade2win that I have got the BBA to lie on my behalf and say that Reuters do it...

You're right, Cap'n Arab... I stand corrected, I should have mentioned that Reuters is the calc agent.

 

[fatpawtrader]

Can somebody give insight into the anticipated direction of short-dated Libor rates if the FOMC announces this Wed. that they will (finally) stop paying on O/N bank reserves?

 

[Martinghoul]

That's the bazillion dollar question... Probably up, if I had to guess.

 

[fatpawtrader]

That's the bazillion dollar question... Probably up, if I had to guess.

I just don't see that priced in. Shouldn't front Euro contract be up another dime or so?

 

[raysor]

Notice that Investing in Shares - Shareworld stopped publishing the LIBOR rates when they discovered it was being manipulated!!!