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