Libor: related pages

Basis points

A basis point is to one hundredth of a percentage point (i.e. 0.01%).

Floating interest rates

Interest rates that change over time in line with market rates (or a bank's central rate).

FRN (floating rate note)

A debt instrument, issued for three years or longer and carrying a variable (floating) interest rate.

Overnight rate

The rate at which money is lent, to be returned the next day, by one bank to another.

Risk premium

The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.

Yield spread

The difference between the yield on a bond and the yield on a similar risk free debt instrument.