LIBOR, LIBID and LIMEAN are all reference rates used to benchmark short-term interest rates. The London Interbank Offered Rate (LIBOR) is the rate at which banks can borrow unsecured funds from other banks in the Londoninterbank market. The London Interbank Bid Rate (LIBID), on the other hand, is the rate that banks are willing to pay for unsecured funds from other banks in the London interbank market. Both these rates (especially LIBOR) are considered the foremost global reference rates for short-term interest rates. They are derived from a filtered average of the world's most credit-worthy banks' interbank bid/ask rates for institutional loans with maturities that range between overnight and one year.