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 such as annually. * borrower’s option: linked option for the borrower (exercisable only if the lender’s option is exercised) to pay the revised interest rate or to redeem the bond although that may involve exit fees.