In the United States it is common to use the Treasury spot rate curve for purposes of valuation. In other countries, either a government spot rate curve is used (if a liquid market for the securities exists) or the swap curve is used (or as explained shortly, the LIBOR curve). LIBOR is the London interbank offered rate and is the interest rate which major international banks offer each other on Eurodollar certificates of deposit (CD) with given maturities. The maturities range from overnight to five years. So, references to “3-month LIBOR” indicate the interest rate that major international banks are offering to pay to other such banks on a CD that matures in three months. A swap curve can be constructed that is unique to a country where there is a swap market for converting fixed cash flows to floating cash flows in that country’s currency.