The London Interbank Offered Rate (LIBOR) is the average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another, and are offered in seven maturities (from overnight to 12 months) and in five different currencies.

Related: 3 Bond ETFs to Position for Higher Interest Rates

Over the last five years, the LIBOR has been experiencing an exponential rise as evidenced in the 3-month LIBOR chart below:

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