Barclays Libor Decline Conflicts With Swaps: Corporate Finance

Barclays Plc, Britain’s second-biggest bank by assets, says the interest rate it pays for short-term dollar loans is the lowest ever relative to rivals even as other measures of its credit deteriorate.

Barclays says it can borrow for three months at 0.3 percent in its submission for the London interbank offered rate, compared with the 0.466 percent composite level of the British Bankers’ Association’s measure. The 17 basis-point gap is a record after Barclays reported the biggest decline this year in the rate of the 18 banks contributing to the benchmark for $360 trillion of global securities.