Libor fallbacks a low priority for most bond investors

However some securities shunned due to perceived weak legal safeguards

Libor-fallbacks-still-a-low-priority montage

Many asset managers are continuing to buy securities linked to the discredited benchmark rate Libor, while ignoring poor fallback provisions that would apply if the widely used rate ceased after 2021, investors and industry advisers say.

By holding cash products with conflicting or sometimes absent legal backstops, investors may be storing up risks in their portfolios, with bonds switching to unwanted rates or mired in lawsuits, sources warn.

One investment advisor reports little industry

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