Business

Libor Is Dead, Almost! What It Was, What Comes Next

For half a century the series of interest rates known collectively as the London interbank offered rate, or Libor, has helped determine the cost of all sorts of borrowing around the world. But over the last decade it became seen as outdated and discredited, and a decision was made to kill off the benchmark at the end of 2021. Banks collectively spent an estimated $10 billion preparing for Libor’s demise, but fears of a messy transition mean that some existing contracts can linger on, though new deals based on Libor are set to end on New Year’s Eve.
Source: https://www.washingtonpost.com/business/why-ditching-libor-is-vexing-the-financial-world/2021/12/23/bee7c878-6475-11ec-9b51-7131fa190c5e_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business

That’s sent the financial world scrambling to adjust the terms in contracts on hundreds of trillions of dollars’ worth of products — from mortgages and credit cards to interest-rate swaps. But over the last decade it became seen as outdated and discredited, and a decision was made to kill off the benchmark at the end of 2021.
Source: https://www.washingtonpost.com/business/libor-is-dead-almost-what-it-was-what-comes-next/2021/12/23/31a188f6-63fc-11ec-9b51-7131fa190c5e_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business

That’s sent the financial world scrambling to adjust the terms in contracts on hundreds of trillions of dollars’ worth of products — from mortgages and credit cards to interest-rate swaps. For half a century the series of interest rates known collectively as the London interbank offered rate, or Libor, has helped determine the cost of all sorts of borrowing around the world. Banks collectively spent an estimated $10 billion preparing for Libor’s demise, but fears of a messy transition mean that some existing contracts can linger on, though new deals based on Libor are set to end on New Year’s Eve.
Source: https://www.washingtonpost.com/business/libor-is-dead-almost-what-it-was-what-comes-next/2021/12/23/8a9d68d8-6471-11ec-9b51-7131fa190c5e_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business

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