Understanding the Libor Rate

The term LIBOR is relatively misunderstood or unknown to many investors.  This video does a good job in explaining how the LIBOR rate plays a huge role in the financial markets.  LIBOR is an acroynm for the London Interbank Offered Rate.  It is the interest rate that bank charge each other for borrowing and it is published in 10 different currencies with 15 maturity date options for each.

LIBOR is an extremely important rate as it is tied to over 300 trillion in mortgages and also approximately 50% of all adjustable rate mortgages and home equity lines of credit.