Imagine it is the start of the year 2022. The financial markets wake to the news that banks have stopped providing quotes to the panel that administers Libor, the rate against which financial contracts worth $350 trillion are benchmarked. Libor ceases to exist.
There is no panic. The development was expected; banks had already agreed with UK authorities that they could stop supporting the discredited benchmark at the end of 2021. Now, fallback clauses are activated for all interest rate derivat