Bank of England warns over easy alternatives to Libor
Bank of England Governor Andrew Bailey said that markets must not replace the tarnished Libor interest rate with alternatives that could end up replicating the same flaws that made it easy for banks to manipulate. The publication of some dollar denominations will continue until mid-2023 for outstanding contracts. But still the London Interbank Offered Rate is […]
Why Libor Retirement is the new Y2K
With the coming December 2021 retirement of LIBOR, Chief Data Officers in financial institutions are preparing to face their Y2K moment. An estimated $350 trillion of financial instruments are linked to this globally accepted benchmark rate for short-term loans, including adjustable rate mortgages, credit cards, student loans, bonds, securities and more. The data management challenge […]
Approaching end of LIBOR – Need for new RFR Liquidity
The London Inter-Bank Offer Rate (LIBOR) reference rate has announced its retirement and 31st December, 2021 will be the last day of its service. It is estimated that contracts worth $350 trillion will be impacted by this transition. Financial institutions are now forced to repaper their contracts to remove LIBOR references. Alternative Reference Rates (RFR) […]