US Fed facility bought Libor bonds with ‘weak’ fallbacks

Industry surprise over purchase of floaters linked to doomed benchmark


With US dollar Libor set to be phased out by mid-2023, investors have been trying to wean themselves off floating rate bonds linked to the benchmark that mature after that deadline.

But that has proved difficult as even the Federal Reserve has shown, with a credit facility set up by the central bank to provide liquidity to the secondary bond market purchasing Libor-linked bonds with weak fallback language last year.

The secondary market corporate credit facility (SMCCF) was established in

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 [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: