The spread over LIBOR is a factor of:

Question

Quizplus · Accepted Answer

The spread over LIBOR (London Interbank Offered Rate) is influenced by several factors including market liquidity, the creditworthiness of the borrower, and the maturity of the loan. Market liquidity affects the ease with which loans can be bought and sold, impacting the spread. The creditworthiness of the borrower determines the risk of default, influencing the interest rate margin. Lastly, the maturity of the loan affects the spread due to the varying risk and return expectations over different time horizons.

The Spread Over LIBOR Is a Factor Of