Podcasts about london interbank offered rate

In this episode of the Fundamentals podcast, I'm joined by Darren Camas and Dimitar Dinev, the Co-Founders of IPOR Protocol. IPOR is a non-custodial exchange for interest rate swaps built on Ethereum. As a DeFi protocol, IPOR refers to a series of smart contracts that provide a benchmark interest rate and enable users to access Interest Rates Derivatives on the Ethereum blockchain. IPOR is an abbreviation for Inter Protocol Over-block Rate. It derives its name from major indices from traditional finance like the LIBOR - the London Interbank Offered Rate, and the SOFR - Secured Overnight Financing Rate and adapts it to DeFi. We discuss what IPOR is, how it works, its core value proposition, and its position within the market. Also, we dive into IPOR's financials, the upcoming v2 of the protocol, the team behind the project, exciting upcoming developments, and more! IPOR Protocol's dashboard on Token Terminal: https://tokenterminal.com/terminal/projects/ipor-protocol IPOR: Site: https://www.ipor.io/ Twitter: https://twitter.com/ipor_io Darren: https://twitter.com/DarrenCamas Dimitar: https://twitter.com/DimitarDinev7 Make sure to leave a comment if you have any questions

De FED valt door de mand met de nieuwste renteverhoging van een kwart procent. Niet alleen geeft dit aan dat de FED het liever niet meer over de rente heeft terwijl de inflatie nog steeds erg hoog is, voorzitter Powell heeft ook zijn masker afgeworpen en de FED ontmaskerd als onderdeel van de overheid en niet als neutrale partij die boven de overheid hangt. Wat de overgang van de London Interbank Offered Rate of LIBOR naar de Secured Overnight Financing Rate  of SOFR kan betekenen voor alle hypotheekhouders verkennen we in deze aflevering van GoudKoorts!

Interest rate swaps are used by banks and other financial institutions as a means of hedging their interest rate exposures The reason that banks use interest rate swaps is that they help to manage their interest rate risk Interest rate risk is the risk that a banks net income will be adversely affected by changes in interest rates Interest rates are constantly changing, and there is always the possibility that interest rates will go up, rather than down Banks try to manage this risk by either selling or buying interest rate swaps In a typical interest rate swap, the bank sells an interest rate, which is usually based on the LIBOR, in exchange for a fixed interest rate The bank is, in effect, selling the floating rate risk from its deposit portfolio to the counterparty, who is then assuming the risk In a typical interest rate swap, the bank sells an interest rate, which is usually based on the LIBOR, in exchange for a fixed interest rate An interest rate swap is a contract between two parties, each of whom agrees to make periodic payments to the other party In an interest rate swap, one party agrees to make payments based on a fixed rate, and the other party agrees to make payments based on a floating rate, usually the LIBOR The two parties exchange the payments, so that the party receiving the fixed rate makes payments to the party receiving the floating rate In an interest rate swap, the floating rate is usually based on the LIBOR The LIBOR is an acronym for the London Interbank Offered Rate, which is an interest rate based on the interest rates at which banks lend unsecured funds to other banks --- Send in a voice message: https://podcasters.spotify.com/pod/show/david-nishimoto/message

As real estate investors we are very sensitive to interest rates. Rates for permanent loans are indexed to the yield on the 10 year treasury and in some cases on the yield for the 30 year treasury. But for short term financing like bridge financing or construction loans, these loans are indexed historically to LIBOR. It's common to see a construction loan with a rate of LIBOR + 5.75% with a floor of, say, 8.5%. So what is this thing called LIBOR and why is it used to set rates for commercial bridge loans? For more than 40 years, the London Interbank Offered Rate—commonly known as Libor—was a key benchmark for setting the interest rates charged on adjustable-rate loans, mortgages and corporate debt. The important aspect of SOFR is that theoretically, it will be more difficult to manipulate because unlike the LIBOR, there's extensive trading in the Treasury repo market. SOFR is based on data from observable transactions rather than on estimated borrowing rates, as is sometimes the case with LIBOR. That makes SOFR much more difficult to manipulate. -------------- Host: Victor Menasce email: podcast@victorjm.com

Are increasing rates putting pressure on your business? CRE investor, entrepreneur, and innovator  Rob Finlay joins the podcast to talk about inflation and share strategies on how to navigate the variables that come along with it. He also discusses his company, Thirty Capital, and the work they do to guide loan borrowers through the complexities of the transaction. [00:01 - 04:38] Forecasting Inflation His take on inflation and what he sees coming in the future This is what they're doing to be inflation-proof Inflation and real estate Should you raise rental rates? Considering the constraints in the market   [04:39 - 10:22] Actionable Steps to Protect Your Portfolio Finding opportunities in different asset classes How to use leverage to your advantage Looking at the future of your finances How to optimize your debt   [10:23 -  16:51] Defease With Ease Comparing SOFR and LIBOR Rob explains defeasance Here's what Rob and his team are doing to help borrowers   [16:52 - 17:57] Closing Segment Reach out to Rob!  Links Below Final Words Tweetable Quotes “So that's going to really separate the real operators… being able to see that incremental return above what everybody else is doing is really going to be down to the operator.” - Rob Finlay “Appropriate leverage is that you have enough leverage on the property to meet your financial objectives. But you don't have too much so that when there's sensitivity in this market, you're not going to get crushed.” - Rob Finlay -----------------------------------------------------------------------------   Connect with Rob! Visit Thirty Capital's website if you want to learn more about the solutions they offer.   Connect with me: I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.   Facebook LinkedIn   Like, subscribe, and leave us a review on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on.  Thank you for tuning in! Email me → sam@brickeninvestmentgroup.com Want to read the full show notes of the episode? Check it out below:   Rob Finlay  00:00 I've always been a big proponent of leverage, leverage, leverage. Being appropriately levered. And that's a good word and a bad word, right? So appropriate leverage is that you have enough leverage on the property to meet your financial objectives. But you don't have too much so that when there's sensitivity in this market, you're not going to get crushed.   Intro  00:19 Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor, we'll teach you how to scale your real estate investing business into something big.   Sam Wilson  00:30 Rob Finlay is a CRE investor and entrepreneur based in Charlotte, North Carolina. He spent the last 20 years bridging the gap between innovation and technology. And he's built a portfolio of CRE assets, a financial advisory and services firm, and 10 technology platforms. Rob, welcome to the show.   Rob Finlay  00:46 Thanks, Sam. Thanks for having me.   Sam Wilson  00:47 Hey, man, pleasure's mine. Three questions I ask every guest who comes on the show: In 90 seconds or less, can you tell me where did you start? Where are you now? And how did you get there?   Rob Finlay  00:54 Okay, well, I started I grew up in real estate. So that's how I started. So since I could walk, all I can remember is commercial real estate. Second question, where are we now? We're in Charlotte, North Carolina. We have a portfolio that spans across the United States in highly-structured products, as well as direct real estate ownership. And where we're going, we're big believers in innovation, technology, and staying ahead of the curve, looking around the corner.   Sam Wilson  01:18 Well, let's talk about looking around the corner. What are you guys doing right now to fortify your portfolio against inflation, the coming changes from the Fed give us the breakdown on what you guys are doing? And what do you see coming?   Rob Finlay  01:30 I think you don't need to be much of a fortune teller to see what's coming, right? We've held off for a long time with our policies. Now we're looking at Fed is raising rates. We're looking at basically a flat yield curve. So basically, you can borrow two year at the same rate as you can 20 years. So we're definitely seeing changes in the market. Inflation is going to be a really interesting thing and a really tricky thing. People who have purchased assets in the last probably 12 months forecasted big rental growth. You might be okay because if the market can support it. Otherwise, I think if you're buying properties, right now, you really have to look at two things. One is, can you... And with the volatility of rates right now, if you think about this, you're buying properties where 10-year treasury in the last 30 days has gone up 50 basis points. So you adjust 50 basis points on your cap rates. Look what happens to your view, in order to make that work. So I think you're going to be looking at affordability, and really trying to figure out if your rental increases that you've performed are going to meet that.   Sam Wilson  02:32 What would prevent... So my small mind I see with inflation, obviously, people's ability to spend has to increase in order to meet those rental rate increases. But if everything is increasing in price, I mean, it seems like at some point that rental growth just has to go up organically if there's more money in the market. Is that a poor summary?   Rob Finlay  02:52 I think inflation and real estate has always been considered a great inflationary hedge, right? It's like, yep, rental rates are gonna go up, everything's gonna go great. There's a point at which though. Here's two things, how much can it go up? So there's rental rates based on a value add strategy, right, and which comea in improving this property. It's a B minus, and I'm going to make it a B plus, I'm gonna get my value add that way. The other way is, you're right, just organic inflation, normal CPI. Problem is your normal CPI now is 10%, right, it's seven, half a percent think we're forecasting it. So I think that's where you're going to start to see, can these properties meet 10% per year increases, when real wages aren't increasing 10%. Then you start to add in the complexity of companies.  I don't think we're going to be booming here. There's a lot of constraints in the market. So now, are employers going to be able to increase wages by 10% in order for people to be able to afford rent? So affordability, which is here in Charlotte is a huge factor and having kids who just graduated from college and are trying to find places to live is a huge factor when looking at real estate right now, especially in multifamily.   Sam Wilson  03:58 Yeah, especially in multifamily. And maybe this was a bad statistic. So you know, somebody could listen to this episode come out and say no, you're completely wrong. But somebody told me and I haven't looked this up, in the Charlotte market, so they looked it up and there's less than 1000 houses for sale on Zillow? Some crazy number. It's like in the entirety of the Charlotte MSA, less than 1000 houses for sale.   Rob Finlay  04:15 Yeah, I think I heard a statement actually even better than that. That there's, I think, there was a million and a half real estate agents or brokers, and there's only 600,000 homes for sale in the United States or something crazy like that. Absolutely. The supply of homes is very small. And being able to build that was also very difficult as well, right? Because you have all the commodity price increase, and there's a shortage of labor.   Sam Wilson  04:39 How do you take all of these variables, put them in the mix and come up with a reasonable move forward solution?   Rob Finlay  04:46 There's a couple of things one is real estate people tend to be pretty quick thinkers sometimes. And I think the things that I look at first and foremost is... I am agnostic to property type, right? I've invested in senior housing, assisted living, industrial office, you name it, we've invested in it. And so I think from a real estate investor standpoint, it's to maybe open up your horizons of opportunities, right, and look at things that multifamily people have done the same, they started looking at home parks and RVs and open up your horizon. The second thing is really look at the buy, right? It's now this is about the buy, how are the assumptions? I still think there are opportunities. There's pockets of opportunities. There's locations of opportunities, but you've got to look far and wide to find those opportunities, and they might not be in Charlotte, North Carolina, they might be in somewhere in the middle of Stanton, Virginia, right? There could be in different areas. That's where you need to be looking.   Sam Wilson  05:43 Got it. That's interesting. What do you, guys, I guess, when you say, look in those different areas? Yes. Okay. You can look in different areas. But are there specific steps or actionable things that you guys are doing to prepare your portfolio for maybe, you know, decreased rent growth? Or maybe inflation above rent growth? Or what are some things you guys are doing strategically?   Rob Finlay  06:03 Yeah, well, I think because of our background in capital markets, and debt advisory, primarily through our defeasance and derivatives business, we focus on appropriate leverage. I've always been a big proponent of leverage, leverage, leverage. Being appropriately levered. And that's a good word and a bad word, right? So appropriate leverage is that you have enough leverage on the property to meet your financial objectives. But you don't have too much so that when there's sensitivity in this market, you're not going to get crushed. We think look at same thing, you still have interest rates that are fairly low, the capital markets, your Freddie's and, and some of your CMBS lenders have widened out a little bit. But there's still as a great time to lock in long-term rates, especially if short-term rates have just gone up. So appropriate leverage means getting the right amount of leverage that will support your property for this near and foreseeable future and be able to get some a decent return out of that. So we've reallocated our portfolio from leverage. That was number one thing, that's easy to do.   Sam Wilson  07:03 Easy to do. Could you define that?   Rob Finlay  07:05 Sure. I mean, you look at your portfolio, look, it stress it, and analyze. That's a nice thing. Real estate, for the most part, and especially with debt optimization, it's all about numbers, it's got to pay off an existing lump, it's going to cost me something to pay off that existing lump, I'm going to get a new loan, and the benefit of having that new loan is going to be something and it's going to be for a period of time. And so calculating that is really just simple math. Now, it gets a little bit more complex when you start looking at forward curves, and what interest rates are going to be like in the future, and so on and so forth. But for the most part, that's what we look at. So we try to tag and look at our future growth of our cash flows from our properties, and sort of tie that back to debt. Do we have enough debt that's going to last us for the next five to seven years, and will provide sufficient leverage on our property, depending on whether or not the market goes great, or more importantly, to prevent its downside protection, right? If the market goes crazy, again, hey, I can refinance, get out and go. If I'm stuck with zero or negative rental rate growth, where we might have in some markets, I need to make sure that I can cover my debt.   Sam Wilson  08:13 Right. And so what does sufficient debt mean? Is there a certain fixed number you guys are looking for? Are you deleveraging? Are you leveraging higher? What does that look like?   Rob Finlay  08:22 That's a great question, but almost impossible to answer. It's all case by case, right? So if I have a property that I've owned for a long period of time, I've got low leverage on it. And I think I'm in a fairly stable market, I might increase my leverage. If I'm in a market where, hey, you know what, we've had a pretty good run, let's make sure that we're at the right amount to show some of that downward pressure. It's all about downward pressure. That's where, I think right now, it's probably you're at the last inning, to be able to get some appropriate leverage on your property for this probably 12 months or so. That's really where we focused on, making sure are we appropriately levered to come into in weather, maybe some flat rental growth, some tougher markets.   Sam Wilson  09:05 Yep. Absolutely. And I've heard, you know, it said that real estate investors inflation hedge is borrowing money at long term fixed interest rates. I mean, if you're borrowing money at three and a half percent, it's going up, you know, inflation is 10% a year. I mean, you're basically getting paid to borrow money. I mean, is that kind of part of the equation as well?    Rob Finlay  09:22 I think so. As long as, once again, it comes down to as long as you're realizing that 10% increase, right? That number only makes sense as long as your rental rates are increasing to that level. Otherwise, you're going to be on the negative side, because your expenses might be going up to 10%. Are your rental rate? And I think that's really the key. And I think that's where real estate operators, that's going to separate the real operators from the partial operators, and that's going to be in this market. What can I do to really add value and increase rental income to my properties? Because in the past few years, it wasn't that hard. Let's be real. And I, myself included, I own property. He's buying them. Yeah, put them in. And yeah, I've done some stuff, but nothing to achieve the kind of results that we've had today, right? Now, you're going to be in a situation where it's not as easy to get that income. So that's going to really separate the real operators, being able to really determine alpha and really being able to see that incremental return above what everybody else is doing is really going to be down to the operator.   Sam Wilson  10:23 Yep. And certainly, we've benefited from the tailwinds as well. I've looked around and said that to many of my investors, it's like, you know, we're not geniuses here. It's just a sign of the times, and we're along. We're riding the wave, and it's great. But you know, that's just a sign of where we are right now. Will it always be this way? Probably not. So, talk to us a little bit about your capital markets company. And then, you know, I'd love to hear about your defeasance company.   Rob Finlay  10:47 Well, so the capital markets is the defeasance company. So I started the company back in 2000. So CMBS loans, loans that had been securitized and sold off, don't allow for prepayment, typically, they need to stay in order to be able to sell the bonds. And so we created this process called defeasance. And defeasance, has been around since 2000. And that business is also corresponding with our derivatives business. So we do a lot of hedges swaps, things like that, which is actually very exciting. Now, since LIBOR has gone away and LIBOR has always been the standard index for which floating rate loans have been priced. Now, LIBOR has gone away and you now have this SOFR, and SOFR in itself has a lot of complexity. So if you're a borrower, and you're going to go get a floating rate loan, your index that's base rate could be priced off of something that is not easily understood, as LIBOR was. There's a lot of complexity in that market, it used to be you, hey, my LIBOR is this, my spread is this and that's what it's going equal. Nowadays, if you're a borrower who borrowed under LIBOR, a year ago, basically, you're going to fall back to a different language, you're going to be converted into a different index. So you had LIBOR, you're now going to have SOFR or something else. So there's gonna be a lot of complexity and a lot of interesting things that are going on in the market coming up next year when these loans have to be converted into SOFR. So any borrower that's one thing for your listeners, any borrower out there that has a floating rate loan, you should probably look at your documents, and figure out that that rate, that index that you have, will change.   Sam Wilson  12:24 Do you think will go up, like this will cost the borrowers more money?   Rob Finlay  12:28 Oh, it could very well, it could be substantial. Because what's happening right now is when they did this fallback, and when they said LIBOR is going away. A lot of people got together and said, Okay, well, what rate do we take and put in its place? Right, LIBOR, London Interbank Offered Rate, and that's gone. So now, we have this SOFR, which is basically a secured overnight funding rate. And, and this rate, though, they try to make it fair. So there's actually a term SOFR rate, there's a fallback SOFR rate, and length, and sometimes your loan documents might be silent, to what actual rate or index that you will fall back to. So any existing loan that has LIBOR, the government has said LIBOR is going away. So LIBOR will go away. And then depending on your documents, that written several years ago, have no concept of SOFR or anything else. There's BSBY other rates out there. So there is some complexity, and then very well could increase the borrowing costs for a borrower.   Sam Wilson  13:25 How does the borrower protect against that from a loan written a year, two, or three years ago?   Rob Finlay  13:30 They look at it, they look at their language, and they get with somebody who knows what they're talking about to represent him. I mean, I think that's, it was funny. 22 years ago, we came out with the slogan... And defeasance for anybody who's been through defeasance realize there's a lot of moving parts to it, right? It's a fairly complex situation where you're buying bonds to match the future cash flows and the stream of what the debt would provide. We name this company Defease With Ease was sort of our slogan, a motto, you know, as commercial defeasance. But the slogan was Defease With Ease. We did the same thing and said, Look, we're going to create SOFR with ease, because there's going to be so much complexity, again, with what's going on in the market, where we want to be that advisor to borrowers to help them through the complexities of a transaction. And that's what our Thirty Capital Financial, which is our capital markets arm, we provide borrowers information on whether or not to defease their loan. And if they're going to defease their loan, we help them go through the process, or, Hey, do you need to look at getting a hedge or a cap or swap? Or something like that, and we help them through our hedging advisory, and our SOFR with these products.   Sam Wilson  14:38 Can you define what it is you mean when you say to defease your loan?   Rob Finlay  14:42 So a securitized loan is pre-paying your lump, right? So if you have a Freddie Mac loan, you have a CMBS loan, those loans get packaged up and sold off as bonds, right? bondholders don't like redemption of principal, and so they don't want the redemption of their interest. Defeasance was created to prevent borrowers from pre-paying their loans, right, so in order to get out of one of those loans, or Freddie Mac or a fair or CMBS loan, you have to go to the lender with a basket of securities that will match the future obligations, your basically your monthly principal and interest payments all the way through the maturity. And that's what a defeasance is. A defeasance is basically matching cash flows. But it's a transaction requires somebody actually, whereas yield maintenance is a calculation, right? Somebody calculates what are the others language in your loan documents, and you calculate it, and there you go. Whereas a defeasance, you're actually doing the actual transaction, we actually have to go identify each individual bond, we have to go by each individual bond, we have to go get accounts, reports and create new successor borrowers and things like that. So the transaction itself has is a transaction in itself.   Sam Wilson  15:53 Yeah, so it sounds like it's incredibly complex. And, you know, obviously, these are expensive things to undergo, but other than going through that process, and usually, this happens, either when someone's going to refinance out of that loan or when they sell a property, right?   Rob Finlay  16:06 Correct. Because the only two times you do a defeasance is when you refinance, or you sell. But once again, that comes to the benefit of why you have to evaluate it. You know, people look at prepayment penalties, typically in a negative light, right? Because you have to pay, you have to pay something, but that's the resultant of being able to have lower rates going forward, or more money. So it becomes once again, it becomes this transaction. When we talked earlier about re-optimizing portfolios. That's the kind of analysis that we did. And it's the kind of analysis we do as a company for our clients, which is, hey, I've got this loan, I've got 3, 4,5 years left, I have a 3.75% coupon. I've got this much equity in my property, here are the loans that I can get right now. What do I do? That becomes math.   Sam Wilson  16:52 Right, Absolutely. Love it. Rob. Thanks for taking the time to come on today. And share with us exactly what you guys are doing what you guys see here in the markets moving forward, how you guys are protecting yourselves as well as breaking down some of the more intricate nuances of defeasance, your Defease With Ease company. Lots of fun things you guys are doing. If our listeners want to get in touch with you or learn more about you or your companies, what is the best way to do that?   Rob Finlay  17:14 Yeah, just take a look at thirtycapital.com and you'll see all of our businesses in our portfolio and you can reach me there.   Sam Wilson  17:20 Fantastic. We will put this in the show notes. But does that T-H-I-R-T-Y or is that 3-0?    Rob Finlay  17:25 That's correct. Yes. Thirty spelled out.   Sam Wilson  17:28 30 capital.com. Rob, thanks so much for your time today. I do appreciate it.   Rob Finlay  17:31 Great. Thanks so much. I appreciate it.   Sam Wilson  17:32 Hey, thanks for listening to the How to Scale Commercial Real Estate Podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen, if you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners as well as rank higher on those directories so appreciate you listening. Thanks so much and hope to catch you on the next episode.

The transition from the London Interbank Offered Rate, otherwise known as LIBOR, has been in the works for quite a while, but we're reaching crunch time for lenders to move on to the Secured Overnight Financing Rate (or some other such alternative rate). In this episode, Daniel Ford of Thompson Coburn Hahn & Hessen clears up some of the misconceptions about the transition, outlines which lenders are well prepared for it and lays out a game plan for those who are not.

This is a SIE Exam Lesson 9 Free Quiz which is covering Money Market. Try it and see how you do if you need help listen to the lesson over. SIE SIE Exam Lesson 9 Free Quiz This is a SIE Exam Lesson 9 Free Quiz which is covering Money Market. Try it and see how you do if you need help listen to the lesson over. Questions covered include Below are questions based on the previous lesson. Choose the letter of the correct answer. To take the quiz online, click here. 1. Which of the following is an example of a money market instrument? A. treasury bills B. commercial paper C. banker's acceptance D. all of the above 2. Money market instruments mature in ___. A. one year or less B. two years C. five years D. ten years or more 3. This is the only type of banker's acceptance that the Federal Reserve buys. A. premium banker's acceptance B. primary banker's acceptance C. prime banker's acceptance D. The Federal Reserve does not accept banker's acceptance. 4. The price of repurchasing a security include a yield. A. True B. False 5. A reverse repurchase agreement is an agreement between two parties where one party agrees to sell a block of securities to another party with the agreement that those securities will be repurchased at a later date at a specific price. A. True B. False 6. The shortest repurchase agreement is ___. A. twelve hours B. overnight C. two days D. five days 7. Which is NOT a characteristic of a repurchase agreement? A. It has a liquidity risk. B. It has a purchasing power risk. C. Its interest rate can change overnight. D. Its interest rates are very low. 8. The reverse repurchase agreement is used primarily by the ___. A. Federal Reserve B. government agencies C. secondary market D. all of the above 9. A reverse repurchase agreement is also called a matched sale. A. True B. False 10. The Federal Reserve is owned by the government. A. True B. False 11. Which of the following does the President of the United States have authority to appoint in the Federal Reserve Board? A. chairman B. governors C. both the chairman and the governor D. neither the chairman nor the governor 12. The Federal Reserve having “open market operations” means ___. A. It accepts all kinds of financial instruments. B. It operates 24 hours a day, 7 days a week. C. It transacts even with those people outside the member banks. D. all of the above 13. How does the Federal Reserve create liquidity in the market? A. It buys fixed-income investments. B. It sells collateralized debt obligations. C. It sells fixed-income investments. D. all of the above 14. What does LIBOR stand for? A. Leicester Internal Bureau of Reserve B. Leicester International Bank Open Rate C. London Interbank Offered Rate D. London International Bank Official Rate 15. These are funds which a member bank of the Federal Reserve leaves on deposit at the Federal Reserve. A. Federal Asset B. Federal Deposits C. Federal Funds D. Federal Reserve Account 16. What is the Federal Fund rate? A. the overnight rate which is the daily average of the rates of most member banks B. the overnight rate which is the highest accounted rate of the day among the member banks C. the overnight rate which is the rate of the day of the Federal Reserve D. the overnight rate which is twice the rate of the day of the loaning bank 17. These are dollar-denominated deposits which are held in a bank branch outside the United States. A. Eurodollars B. Federal Funds C. Foreign Deposits D. all of the above 18. This is the rate for Eurodollars loaned overnight. A. Eurodollar Overnight Rate B. Eurodollar Standardized Rate C. Federal Fund Rate D. London Interbank Offered Rate 19. The London Interbank Offered Rate is the average of Eurodollar loan rates of five major banks which are all located in London. A. True B. False 20. Which of the following is NOT considered as eligible securitie...

From the BBC World Service: We break down how the London Interbank Offered Rate or Libor, a key lending rate used to calculate everything from your mortgage to credit-card offers, has been overhauled. Plus, while countries including the U.S. have been scaling back self-isolation requirements, several Chinese cities have recently gone into full lockdown. And, the world’s biggest oil producers don’t seem too concerned about the longer-term impact of COVID-19.

From the BBC World Service: We break down how the London Interbank Offered Rate or Libor, a key lending rate used to calculate everything from your mortgage to credit-card offers, has been overhauled. Plus, while countries including the U.S. have been scaling back self-isolation requirements, several Chinese cities have recently gone into full lockdown. And, the world’s biggest oil producers don’t seem too concerned about the longer-term impact of COVID-19.

Charles explains what LIBOR is and why it is important to real estate investors.   What do you want to hear/see more of and less of? What question do you always wish I would ask but I never do? Connect with the Global Investors Show, Charles Carillo, and Harborside Partners: ◾ Setup a FREE 30 Minute Strategy Call with Charles: schedulecharles.com/  ◾ Global Investors Web Page: charleskcarillo.com/global-investors-podcast/ .◾ Join Our Email Newsletter: http://bit.ly/32pehL0 ◾ Foreign Investing in US Real Estate Facebook Group: facebook.com/groups/ForeignInvestingInUSRealEstate/

LIBOR, the London Interbank Offered Rate, has been a primary benchmark in financial markets since the early 1980s. But it's being phased out. Why is the industry moving away from LIBOR? What will replace it? And what will this transition mean for investors, borrowers and banks? In the first installation of this two-part feature, Greg Sitrin, head of fixed income trading at Raymond James, discusses the reasons behind the shift and implications for investors holding LIBOR-tied securities and contracts. [Recorded 10/22/21]

These English lessons are for anyone who needs to read, talk or write about the economy in English. Welcome to our first lesson! Today, we will take a look at the London Interbank Offered Rate (LIBOR). This is a great English lesson for bankers. Here is our key English vocabulary. Listen to how these words are used during the podcast. Benchmark: a point of reference against which things may be compared or assessed. Syndicated loan: a loan offered by a group of lenders. Gauge: to estimate, to measure or to determine a size or an amount. Conflict of interest: when someone gets personal benefit from their official actions or decisions. Fine: penalty of money that a court of law or other authority decides has to be paid as punishment. Underpin: to support, to be the basis for something.

"Do not refinance your house unless you have at least a ½ point to a point difference in interest rates. Then it will be valuable to you." -Christina Suter Today I am talking about interest rates in real estate and what that means for you. First, it's very important to know what an interest rate is and how it differs from commercial real estate to single family. The standard turnaround time for when people refinance is about 5 years, however if the interest rate only moves slightly and not at least a half of a point or greater, then refinancing isn't a good idea. Interest rates are based on two components: the T Bill Rate and libor which stands for London Interbank Offered Rate. These two factors determine the interest rates that most standard banks use. It's important to know the math before making a decision like refinancing or purchasing property as the interest rate is what you will be paying in addition to your loan.    Topics Covered in this episode: What is an interest rate in real estate  Why is it more than your APR How do banks determine the current interest rates What is a T Bill Rate What does Libor stand for  When should you refinance and when you shouldn't  Why is 5 years the standard to refinance a property Always do the math    Listen now and find out why Christina thinks education is the key to financial leadership on Spotify, iTunes and Youtube.  The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.   Find our more about Christina here:  Website ChristinaSuter.com Facebook Christina  LinkedIn Christina Suter Instagram RealChristinaSuter Twitter RealChristinaS

The end of this year marks a big change for financial institutions worldwide with the elimination of LIBOR as a base rate. LIBOR, or London Interbank Offered Rate, has been around for almost fifty years as a reference rate, or index, that many banks around the world have relied on for a wide range of financial products. The upcoming elimination of LIBOR will affect banks and borrowers significantly. Mark Meloy, CEO of First Business Bank, speaks with Ed Sloane, Chief Financial Officer of First Business Financial Services, Inc. and Bill Uelmen, Director of Treasury at First Business Bank, about the role of LIBOR and its likely replacement, SOFR (Security Overnight Funding Rate). This discussion focuses on: - The products and services LIBOR impacts - The risk to banks and borrowers without LIBOR - SOFR as a potential replacement index in 2021 - When First Business Bank plans to announce a new rate The First Business Bank podcast is dedicated to helping business owners work better, faster, and smarter to achieve their financial goals. For more interviews like this one, subscribe to the First Business Bank podcast on Apple Podcasts, Spotify, or wherever you listen to podcasts. First Business Bank. Member FDIC.

The administrator of the London Interbank Offered Rate has made what was expected official: the widely used benchmark will cease publication, with certain Libor tenors ceasing as soon as the end of 2021. With the “Libor endgame” in its final stages, along with a welter of other Libor transition news in recent weeks, ABA VP and ARRC member Hu Benton joins the ABA Banking Journal Podcast to discuss: ICE Libor’s public consultation to cease publication of Libor tenors Supervisory expectations for how banks use Libor in the interim period before the rate ceases What regulators have said about banks’ use of alternative rates to the Secured Overnight Financing Rate, such as Ameribor or commercial paper The adoption of the ISDA protocol on fallback rates for derivatives The importance of educating clients about the Libor transition and what it means for them Resources from the Alternative Reference Rates Committee on SOFR adoption, contract fallbacks and other challenges Additional resources: Resources from the ARRC (contact Hu Benton at hbenton@aba.com to join a working group) ABA resources on reference rate transition

LIBOR, the London Interbank Offered Rate, a key set of interest rates linked to hundreds of trillions of dollars of financial contracts and instruments in on its way out. The British Financial Conduct Authority, or FCA, which oversees LIBOR announced that it may be phased out after December 31, 2021, when they will no longer require the banks to provide LIBOR offers. These decisions have deep and far-reaching consequences. Hear from Scotiabank leaders who discuss key priorities to consider as your organization makes plans for the transition away from interbank offered rates.

Di Florio, a former director of the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations details how regulators’ increasing use of regtech is transforming their supervisory relationships and exam experience with broker-dealers and advisors. Listen in as di Florio also talks about how regulators are deploying technology and data analytics to identify needles in the regulatory haystack and also how the transition from the London Interbank Offered Rate, or Libor, poses a significant compliance risk.  

Dan Fitchler, AVP of Housing Finance Policy, MBA and Tim Kitt, SVP of Pricing and Execution, Single-Family, provide an update on the efforts across the industry to replace LIBOR with the GSE-supported overnight SOFR framework. Hear what's staying the same and what may be changing to ensure a successful transition to SOFR before the end of 2021.

An alleged private document is said to be circulating among banks indicating that Kenya is seeking 150 billion Shilling loan in tranches,  at a rate of about 8.65 percent (London Interbank Offered Rate plus 645 basis points), equivalent to what Kenya recently secured for its longest maturity Eurobond of 30 years, yet the syndicated debt is to be paid back in six years.  However, it is reported that Haron Sirima who is the  Director-general Public Debt Management Office and also former Central Bank (CBK) deputy governor  denies any awareness of such a loan. --- Support this podcast: https://anchor.fm/newscast-africa/support Learn more about your ad choices. Visit megaphone.fm/adchoices

The London Interbank Offered Rate, more commonly known as LIBOR, is often referred to as the world’s most important number. So, what do you do when the authorities say you can no longer use it? In our latest episode, our host, Scott Martin is joined by Ed Moorby and Sherine El-Sayed to explore how the global financial sector is doing so far in changing the way it prices almost all of its financial products. Tune in now!

With the London Interbank Offered Rate — which underpins more than $350 trillion in mortgages, commercial loans, bonds and derivatives worldwide, including $200 trillion in U.S. dollar-denominated financial instruments — not guaranteed to be sustained after 2021, what should banks be doing now to prepare for a transition away from the widely used benchmark? On the latest episode of the ABA Banking Journal Podcast, Federal Reserve official David Bowman and ABA staff expert Hu Benton discuss: Need-to-know background on why Libor has become unsustainable as a benchmark rate Why the Alternative Reference Rates Committee selected the Secured Overnight Funding Rate, or SOFR, as its preferred alternative What bankers need to know about how SOFR behaves differently from Libor and why they will need time to get used to it The urgency of reviewing bank portfolios to ensure contracts contain fallback language should Libor cease permanently Supervisory expectations regarding SOFR use and planning for the Libor transition How bankers can get involved in the ARRC’s public consultation process on the transition and learn more

This episode is all about the London Interbank Offered Rate, or LIBOR as it's commonly called. Beth Hammack, Goldman Sachs' global treasurer, and Jason Granet, head of the firm's LIBOR transition efforts, discuss what LIBOR is, what went wrong with the interest rate and now why and how the financial industry is moving to an alternative rate. As far as what the shift away from LIBOR means for markets, Hammack says, "First and foremost I think the impact is going to be hopefully an improvement in safety and soundness." This podcast was recorded on September 27, 2018. The information contained in this recording was obtained from publicly available sources and has not been independently verified by Goldman Sachs. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the information contained in this recording and any liability as a result of this recording is expressly disclaimed. The recording should not be relied upon to evaluate any potential transaction. Goldman Sachs is not giving investment advice by means of this recording, and this recording does not establish a client relationship with Goldman Sachs. Copyright 2018 Goldman Sachs & Co. LLC. All rights reserved.

The London Interbank Offered Rate -- aka LIBOR -- is the most widely-used benchmark for short-term interest rates in the world. So if LIBOR is so popular, then why is it going away? And what's replacing it? Ming Min Lee, a principal with Oliver Wyman, has the answers.  After you listen, check out AFP's LIBOR transition plan for a rundown of the issue, plus key actions you can take now. Discuss LIBOR at AFP 2018 this November in Chicago. Save $100 off registration when you use promo code PODCAST18. Visit www.AFP2018.org/pricing.

LIBOR, the London Interbank Offered Rate, has been called “the world’s most important number.” Tim Bowler, President of ICE Benchmark Administration, is responsible for managing ICE LIBOR, along with a slew of other benchmarks including ICE Swap Rate, and the London Bullion Market Association Gold and Silver Prices. Widely used across the globe, LIBOR’s rates underpin between $200-$300 trillion of financial products and serve as a gauge of market expectation regarding central bank interest rates. How LIBOR will evolve in the months ahead is a focus of daily headlines these days, and Tim tells us why. Inside the ICE House: https://www.theice.com/podcast/inside-the-ice-house

The British Government has promised action to deal with the scandal at Barclays. The bank has been fined for trying to fix the interest rate at which banks lend to each other - London Interbank Offered Rate - or Libor. Yet again it's the lack of regulation that is being blamed for a financial problem. Sarah Montague talks to Professor Niall Ferguson who argues that the world is responding in the wrong way to the global financial crisis. He thinks the economic chaos which began in 2007 was caused by too much regulation, not too little.(Image: Professor Niall Ferguson)

First U.S. Bankers raised questions about how the daily London Interbank Offered Rate was calculated and then The Wall Street Journal demonstrated that the rate was inexplicably diverging from what the data suggested it ought to be. Getting it right is important because LIBOR is the basis for many kinds of loans. The British Bankers Association says it will make changes. See acast.com/privacy for privacy and opt-out information.