Items Tagged with 'London Interbank Offered Rate'

ARTICLES

  • From HW Magazine

    What should replace LIBOR?

    Gauging the impact of a new benchmark index for ARM mortgage lending
    As changes and deadlines go, the decision to phase out the London Interbank Offered Rate (LIBOR), the primary benchmark for short-term interest rates, is significant for the global and the U.S. consumer finance and mortgage industries.
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  • As LIBOR phases out, should lenders still originate ARMs?

    The uncertain replacement once LIBOR ends in five years
    With the looming end to LIBOR coming up as U.K. authorities phase it out over the next five years, it creates a lot of uncertainty around the future of adjustable rate mortgages. LIBOR and ARMs are closely tied together, leaving the industry wondering if they should originate these loans any more.
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  • LIBOR Alternative Launched

    Late Tuesday, London-based inter-broker ICAP plc said that Wednesday would mark the the launch of its U.S. alternative to the the London Interbank Offer Rate, or LIBOR. The move comes amid harsh criticism of LIBOR from many market quarters, suggesting that banks intentionally reported lower lending rates than were reality as part of a market signaling strategy during the height of the most recent round of the credit crunch in March.
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  • Changes to LIBOR Loom; Will Borrowers Feel the Squeeze?

    On the heels of criticism from some market participants, the British Bankers Association on Tuesday announced a series of sweeping changes to the governance of its London Interbank Offered Rate. But it's the changes that the BBA said it is considering that seem likely to have most relevance for U.S. borrowers going forward.
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  • LIBOR Mess Promises to Squeeze ARM Borrowers

    An international uproar over allegations that some banks intentionally manipulated LIBOR, a key interest rate used to determine rate adjustments for many adjustable-rate mortgage holders, is likely to have a real-world impact for many adjustable-rate mortgage borrowers, sources told Housing Wire Thursday.
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  • Franklin Credit Hedges Against Rates

    In a bet that recent steep drops in short-term interest rates may be coming to an end, Franklin Credit Management Corporation said Wednesday that it had entered into interest rate swap agreements, hedging a portion of its interest-rate-sensitive borrowings against future increases in short-term interest rates.
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