LIBOR stands for London Interbank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London for one year. It is a standard financial index, commonly used in the United States as a benchmark for adjustable rate mortgages. LIBOR rates tend to move in closer concert with global interest rate benchmarks, such as the federal funds rate, and is a more volatile index than the Monthly Treasury Average.
