What Libor is referring to ?

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oem7110
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What Libor is referring to ?

Post by oem7110 » Sun May 05, 2013 12:45 pm

Referring to EM_0_I0B LIBOR(1Mth), it should be 0.5% now, but the data show 99.8.
I get no idea about 99.8, does it ready referring to LIBOR or something else.

Does anyone have any suggestions?

Thanks in advance for any suggestions

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jas-105
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Post by jas-105 » Mon May 06, 2013 7:03 am

The derived interest rate is 100 - 99.8, so 0.2%.
The reason it is different from the actual bank rate of 0.5% is because this is the average rate that banks charge each other to borrow/lend.
The banks setting these rates are largely crooked so be careful !

oem7110
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Post by oem7110 » Mon May 06, 2013 7:37 am

jas-105 wrote:The derived interest rate is 100 - 99.8, so 0.2%.
The reason it is different from the actual bank rate of 0.5% is because this is the average rate that banks charge each other to borrow/lend.
The banks setting these rates are largely crooked so be careful !
But the actual bank rate of 0.5% is actually reflecting those borrow/lend activities between banks, will it be more representative than derived interest rate at 0.2%?

Do you have any suggestions?

Thanks you very much for any suggestions

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