Floating rate

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An interest rate that floats, by reference to inter-bank offered rates, or central bank base rates, or that kind of thing. The London Interbank Offered Rate — fondly known as LIBOR — cue dramatic look gopher — was once the daddy of interest rates, but it has rather fallen upon hard times.

Once thought of as a sleepy corner of the financial markets inhabited by losers who couldn't get a job trading anything sexy like credit derivatives but, boy did a few folks who thought that get a surprise in 2012.

They’re in jail now.

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