LIBOR CURVE

A graphical representation of the various London Interbank Offered Rate (LIBOR) maturities with short-term floating rate. Huge banks with high credit ratings lend these to one another. The LIBOR curve is typically depicted for short-term periods of less than a year. Not intended for long-term borrowing, so this is most useful for assessing short-term interest rates. The LIBOR curve and Treasury yield curve are two of the most widely-used proxies for risk-free bond return.

Also known as interest rate swap curve or floating-rate curve.