Libor death threatens to blow hole in hedges

Isda AGM: BlackRock, Fed stress need for fallbacks to marry up across rates universe

Federal Reserve
Market has “deep desire” for fallback consistency – Fed's Bowman

Read all our coverage from the Isda AGM here

Swaps users are worried gaps will open up in their hedging portfolios in the event of Libor’s death, unless the industry is able to line up so-called fallback language across different rates products – from mortgages and bonds to interest rate swaps.

If Libor stops being published at the end of 2021 – when panel banks will be free to abandon the scandal-hit benchmark – then products referencing Libor would switch to a new rate. Today, these fallback

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: