Libor death threatens to blow hole in hedges

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

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