> LIBOR & Eurodollars futures trading?

LIBOR & Eurodollars futures trading?

Posted at: 2014-12-05 
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1) LIBOR futures are about forward rates. You can't compare them to a current cash deposit.

2) The price them this way (and many other interest rate futures are similar) to make them look like bonds. Interest rates up = futures value down

3) They aren't much like bonds because there is no convexity to an interest rate future.

So, this doesn't make much sense to me. Future contracts effectively trading on LIBOR through eurodollar time deposits are priced at an index. You take the 100 less the index to get the LIBOR rate. So effectively the price increases as the interest falls. But, if I were to take out an actual time-deposit and sell it, and the interest rate was fluctuating, if the interest rate was higher I could sell it for more money due to the higher cash flows than a could before. So the rate increases with the price. Could someone explain the logic of LIBOR futures to me?