LIBOR reg.

[yoganand l]

what is a 3 month libor rate..

is it an average of daily libor rates for 3 months ?

regards,

yogan.

[Anand Nandedkar]

Dear Sir,

 

3-months USD LIBOR rate is trading at 0.3031% at the end of 17.01.2011.

 

As far as average or specific rate etc, the same depends on the rate that has been specified by the Bank / FI in the sanction letter and mutually agreed upon by the lender & borrower.

However, Banks will prefer to apply average of daily LIBOR for 3 months to hedge against interest rate risk to a certain extent. As the average will also cover any amount of wide fluctuations, the applied rate shall factor in some of the fluctuation.

 

Best regards,

 

Anand Nandedkar.

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ANAND NANDEDKAR.
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