▁for ▁l ending ▁purposes . ▁ ▁The ▁L IB OR – O IS ▁spread ▁has ▁histor ically ▁hover ed ▁around ▁ 1 0 ▁basis ▁points ▁( b ps ). ▁However , ▁in ▁the ▁midst ▁of ▁the ▁financial ▁crisis ▁of ▁ 2 0 0 7 – 2 0 1 0 , ▁the ▁spread ▁sp ik ed ▁to ▁an ▁all - time ▁high ▁of ▁ 3 6 4 ▁basis ▁points ▁in ▁October ▁ 2 0 0 8 , ▁indicating ▁a ▁severe ▁credit ▁cr unch . ▁Since ▁that ▁time ▁the ▁spread ▁has ▁decl ined ▁er rat ically ▁but ▁substantial ly , ▁dro pping ▁below ▁ 1 0 0 ▁basis ▁points ▁in ▁mid - J anu ary ▁ 2 0 0 9 ▁and ▁returning ▁to ▁ 1 0 – 1 5 ▁basis ▁points ▁by ▁September ▁ 2 0 0 9 . ▁ ▁R isk ▁bar ometer ▁ 3 - month ▁L IB OR ▁is ▁generally ▁a ▁floating ▁rate ▁of ▁finan cing , ▁which ▁fl uct u ates ▁depending ▁on ▁how ▁ris ky ▁a ▁l ending ▁bank ▁feels ▁about ▁a ▁borrow ing ▁bank . ▁The ▁O IS ▁is ▁a ▁swap ▁derived ▁from ▁the ▁over night ▁rate , ▁which ▁is ▁generally ▁fixed ▁by ▁the ▁local ▁central ▁bank . ▁The ▁O IS ▁allows ▁L IB OR - based ▁banks ▁to ▁borrow ▁at ▁a ▁fixed ▁rate ▁of ▁interest ▁over ▁the ▁same ▁period . ▁In ▁the ▁United ▁States , ▁the ▁spread ▁is ▁based ▁on ▁the ▁L IB OR ▁Euro d ollar ▁rate ▁and ▁the ▁Federal ▁Reserve ' s ▁Fed ▁Fund s ▁rate