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Lender option borrower option or lender's option borrower's option (LOBO) is a long term borrowing instrument available in the United Kingdom. They involve periodic interest re-fixings, which incorporates two linked options:〔 * lender's option: option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually. * borrower’s option: linked option for the borrower (exercisable only if the lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond - although that typically involves huge exit fees. They are provided by banks and the loan contract runs for between 40 and 70 years.〔 There is no regulatory body responsible for overseeing their use.〔 ==Origins== Public bodies used to be only able to borrow money through government Public Works Loan Board (PWLB) loans. However borrowing from banks in the form of LOBOs was permitted from the early 2000s. LOBOs were made available with low teaser rates, cheaper than PWLB loans so they appeared to be an attractive alternative.〔 Few councils had access to the complex option valuation models required, nor the market data needed as inputs for such models.〔Colin Marrs 02 Jul 2015 ''Room 151 - Local Government Treasury, Technical & Strategic Finance'' (LOBO documentary puts councils in firing line )〕 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Lender option borrower option」の詳細全文を読む スポンサード リンク
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