Ray of light: Credit markets continue to thaw

Here's one ray of light for investors: credit markets continue to thaw.

The London interbank offered rate, or Libor, is dropping at the fastest pace since January, as financial institutions worldwide gain confidence that the worst of the financial crisis is over, and that Fed / Treasury and companion major economy actions are working, Bloomberg News reported Tuesday.

The Libor fell to 1.12 percent on Tuesday, from 1.32 percent a month ago. The Libor is particularly important because it determines rates on $360 trillion of financial products worldwide, from home loans to derivatives. For example, payments on some mortgages Americans hold are tied to the Libor.