Libor expert: don’t rely on forward RFR rates for transition

Swaps users should embrace backward-looking risk-free rates instead, says chair of UK working group

Libor transition

Forward-looking risk-free rates (RFRs) may not be ready before legacy instruments need to be weaned off Libor and so users should prepare to move to backward-looking benchmarks, according to the chair of an RFR working group.

Currency-specific working groups have so far selected RFRs based on overnight rates as alternatives to Libor. For swap contracts, these rates are generally based on a daily compounded overnight rate – for instance, a three-month Sonia rate.

Compounded overnight rates can

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a 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