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2

Yes, in general it is. If you take a look at the banks that contribute to the Libor you'll see why: Bank of America Bank of Tokyo-Mitsubishi UFJ Barclays Bank BNP Paribas Citibank NA Credit Agricole CIB Credit Suisse Deutsche Bank HSBC JP Morgan Chase Lloyds Banking Group Rabobank Royal Bank of Canada Société Générale Sumitomo Mitsui Banking ...


3

It depends on the purpose for which you want to use LIBOR. If you want to use it as a measure of risk free rate, then it is not a good idea, because it included premiums for interbank lending credit risk and liquidity risk. You should use the rate on short term US treasuries for risk free rate (again it depends on the duration of your model). You can also ...



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