LIBOR
Definition · Level 7 · Futures, rates & macro
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London Interbank Offered Rate: the old benchmark set from banks’ estimates of their unsecured borrowing costs. After manipulation scandals it was phased out (USD panel ended June 2023), replaced by SOFR, SONIA, €STR and others.
Example
Old loans at “3-month + 2%” were moved to SOFR plus a fixed spread adjustment.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 7 · Futures, rates & macro, in the lesson “The Fed, policy rates & the curve”: Fed funds, FOMC, dots, hawks and doves, QE/QT, repo and SOFR, real yields, and reading the yield curve.
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