The London Interbank Bid Rate (LIBID) is a bid rate; the rate bid by banks on Eurocurrency deposits (i.e., the rate at which a bank is willing to borrow from other banks). It is "the opposite" of the LIBOR (an offered, hence "ask" rate, the rate at which a bank will lend). Whilst the British Bankers' Association set LIBOR rates, there is no correspondent official LIBID fixing.
Conventional wisdom used to assert that a LIBID rate could be calculated by subtracting a fixed amount (often given as ⅛th of 1%) from the prevailing BBA LIBOR rate, however this is no longer the case as bid/offer spreads have tightened in recent years. Additionally, it cannot be the case that the LIBOR / LIBID spread is always ⅛th of 1% for all maturities and all currencies all the time.
Famous quotes containing the words london, bid and/or rate:
“It doesnt matter who you vote for, the government always gets in.”
—Graffiti. London (1970s)
“O, call back yesterday, bid time return.”
—William Shakespeare (15641616)
“Terence, this is stupid stuff:
You eat your victuals fast enough;
There cant be much amiss, tis clear,
To see the rate you drink your beer.”
—A.E. (Alfred Edward)