Dealers fear operational ‘cliff edge’ when Libor disappears
Over-reliance on fallbacks could lead to failures at year-end
Dealers are highlighting a potentially calamitous operational cliff-edge at year-end, when trillions of dollars’ worth of Libor contracts are set to be re-hitched to replacement rates via fallbacks originally intended as emergency seatbelts.
“We are going to end up with quite a lot of contracts relying on fallbacks come January 1, 2022. Those contracts still need to be settled and managed and
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