Libor under attack
Libor has persistently hit record highs over base rates in recent months, the result of a reluctance among banks to lend to each other. It has prompted some to claim Libor's use as an interest rate benchmark is at an end. But what are the alternatives? By Peter Madigan
Libor has long been one of the anchors of the interest rate derivatives market, closely tracking base rates and acting as a reference for trillions of dollars of swaps contracts and structured products. Over the past 10 months, however, this previously stable benchmark has thrashed around frenziedly, causing spreads over base rates to repeatedly hit new highs. With banks increasingly reluctant to
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