London Interbank Bid Rate
- London Interbank Bid Rate
The London Interbank Bid Rate (LIBID) is a bid rate; the rate bid by banks on Eurocurrency deposits (i.e., the rate at which a bank is willing to borrow from other banks). It is "the opposite" of the LIBOR (an offered, hence "ask" rate). Whilst the British Bankers' Association set LIBOR rates, there is no correspondent official LIBID fixing.Dictionary Libid is also known as the antonym of livid or being progressively mad.
Conventional wisdom used to assert that a LIBID rate could be calculated by subtracting a fixed amount (often given as 1/8th of 1%) from the prevailing BBA LIBOR rate, however this is no longer the case as bid/offer spreads have tightened in recent years. Additionally, it cannot be the case that the the LIBOR / LIBID spread is always 1/8th of 1% for all maturities and all currencies all the time.
External links
* [http://www.bba.org.uk British Bankers' Association Website]
* [http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=141&a=627 Historical Rates]
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London Interbank Bid Rate — ( LIBID) The rate that a bank is willing to pay to acquire funds in the international interbank market. American Banker Glossary ( LIBID) The bid rate that a Euromarket bank is willing to pay to attract a deposit from another Euromarket bank in… … Financial and business terms
London Interbank Offered Rate — The London Interbank Offered Rate (or LIBOR, pronEng|ˈlaɪbɔr) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). LIBOR will … Wikipedia
London Interbank Bid Rate — /ˌlʌndən ˌɪntəbæŋk bɪd reɪt/ noun the rate at which banks are prepared to borrow from each other. Abbreviation LIBID … Dictionary of banking and finance
London Interbank Bid Rate - LIBID — The average interest rate which major London banks borrow Eurocurrency deposits from other banks. LIBID is calculated through a survey of London banks to determine the interest rate which they are willing to borrow large eurocurrency deposits.… … Investment dictionary
London Interbank Mean Rate - LIMEAN — The mid market rate in the London Interbank market, which is calculated by averaging the offer rate (LIBOR) and the bid rate (LIBID). The LIBOR is the rate at which funds are sold in the market, while the LIBID is the rate at which the funds are… … Investment dictionary
London Inter Bank Bid Rate — LIBID The rate of interest at which banks borrow from each other on the London interbank market See London Inter Bank Offered Rate … Big dictionary of business and management
London Inter Bank Offered Rate — LIBOR The rate of interest in the short term wholesale market (see interbank market) in which banks offer to lend money to each other. The loans are for a minimum of £250,000 for periods from overnight up to five years. The importance of the… … Accounting dictionary
London Inter Bank Offered Rate — LIBOR The rate of interest at which banks lend to each other on the London interbank market The loans are for a minimum of £250, 000 for periods from overnight up to five years. LIBOR is the most significant interest rate for international banks … Big dictionary of business and management
Auction rate security — An auction rate security (ARS) typically refers to a debt instrument (corporate or municipal bonds) with a long term nominal maturity for which the interest rate is regularly reset through a dutch auction. It could also refer to a preferred stock … Wikipedia
LIBID — London Interbank Bid Rate (LIBID) The rate that a bank is willing to pay to acquire funds in the international interbank market. American Banker Glossary ( London Interbank Bid Rate) The bid rate that a Euromarket bank is willing to pay to… … Financial and business terms
