Synthetic Libor mooted as ‘tough legacy’ fix
Recalibration of doomed rate or catch-all legislation under debate as lifeline for lingering contracts
Libor could be allowed to live on – at least in name – for long after panel banks have thrown in the towel on the rate. A modified, formula-based Libor is just one of a range of extreme measures currently being considered as part of a rescue mission for financial contracts most stubbornly welded to the discredited benchmark.
So-called synthetic Libor, which would see the rate calculated as a
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