e/LIBOR market model

Information
has gloss	eng: The LIBOR market model, also known as the BGM Model (Brace Gatarek Musiela Model, in reference of the names of some of the inventors), is a financial model of interest rates. It is used for pricing interest rate derivatives, especially exotic derivatives like Bermudan swaptions, ratchet caps and floors, target redemption notes, autocaps, zero coupon swaptions, constant maturity swaps and spread options, among many others. The quantities that are modeled, rather than the short rate or instantaneous forward rates (like in the Heath-Jarrow-Morton framework) are a set of forward rates (also called LIBORs), which have the advantage of being directly observable in the market, and whose volatilities are naturally linked to traded contracts. Each forward rate is modeled by a lognormal process under its forward measure, i.e.
lexicalization	eng: LIBOR Market Model
instance of	(noun) the percentage of a sum of money charged for its use rate of interest, interest rate

Meaning
German
has gloss	deu: Das LIBOR Markt Modell (auch BGM-Modell nach dessen Autoren Brace, Gatarek und Musiela) ist ein Zinsstrukturmodell zur Bewertung von Zinsderivaten, insbesondere komplexen Zinsderivaten. Im Gegensatz zu anderen Modellen verwendet es am Markt beobachtbare LIBOR-Sätze.
lexicalization	deu: LIBOR Markt Modell