Libor floors remain in institutional market,
but are lower in 4Q20

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As the Libor rate remains at low levels, investors continue to demand Libor floors in the institutional market. The average 3-month Libor rate is at an average of 0.22% so far in 4Q20, this is down from 0.25% in 3Q20 and is roughly 130bp below 1Q20’s average. The precipitous drop in Libor rates led to the reappearance of Libor floors in the institutional market.