CFA Level 1 - Derivatives
LIBOR is quoted on a one-month, three-months, six-months or yearly basis. Six-month LIBOR is most commonly quoted for mortgages. Both Fannie Mae and Freddie Mac use LIBOR as an index for the loans they purchase.
Euribor (Euro Interbank Offered Rate) is similar to LIBOR except it uses euros and euro deposits in the lending and borrowing between banks, instead of dollars. Euribor is the rate at which euro interbank term deposits are offered by one prime bank to another prime bank. It is compiled in
The choice of banks quoting for Euribor is based on a number of market criteria, but all banks are selected to ensure that the diversity of the euro money market is adequately reflected, thereby making Euribor an efficient and representative benchmark.