Editing Libor (section)

===Interest rate swaps===
[[Interest rate swap]]s based on short Libor rates traded on the [[interbank market]] for maturities up to 50 years. In the swap market, a "five-year Libor" rate referred to the five-year swap rate, where the floating leg of the swap referenced the three- or six-month Libor (this can be expressed more precisely as for example "5-year rate vs 6-month Libor"). "Libor + {{math|{{var|x}}}} [[basis point]]s", when talking about a bond, meant that the bond's cash flows were discounted on the swaps' zero-coupon [[yield curve]] shifted by {{math|{{var|x}}}} basis points to equal the bond's actual market price. The [[day count convention]] for Libor rates in interest rate swaps was Actual/360, except for the GBP, for which it was Actual/365 (fixed).<ref>{{cite web|url=http://www.bbalibor.com/technical-aspects/calculating-interest|title=Calculating Interest|archive-url=https://web.archive.org/web/20120621072738/http://www.bbalibor.com/technical-aspects/calculating-interest|archive-date=2012-06-21|publisher=bbalibor.com}}</ref>