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 spread over an overnight risk-free rate, is one fix being discussed by a new “tough legacy” subcommittee 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: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact [email protected] to find out more. You are currently unable to copy this content. Please contact [email protected] to find out more.
A sterling fund ##R subcommittee is reportedly investigating the possibility of a synthetic LIBOR for certain legacy applications , according to Risk.net . A modified formula - based LIBOR derived from a RFR is one of the extreme measures the new “ tough legacy " technology is understood to be considering .