As Libor declines, Libor floors begin to trickle back
As interest rates continue to decline, Libor floors are on investors’ minds once again. As of September 24, the 3-month Libor rate was 2.11%, 69bp below its 2018- year-end level. So far in 3Q19, the average Libor rate is 2.20%, down from 2.51% in 2Q19. If Libor continues to decline, Libor floors which have been irrelevant for a while, might stage a comeback.