What is “LIBOR” and how does it relate to the cost of debt for nontraded REITs?
Answer: Many nontraded REITs have debt with interest rates that are set to vary with “LIBOR”, the London Interbank Offered Rate. It is the benchmark rate that some of the world’s leading banks charge each other for short-term loans. There are 1 month LIBOR rates, 3 month LIBOR rates and 6 month LIBOR rates.Go Back
The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.