https://www.bloomberg.com/news/articles/2017-07-2…
Lending in the US tied to LIBOR is a fairly recent phenomenon. There used to be far more stable indeces available to US borrowers. I'm glad it's going away in 5 years.
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WOW. That is big news. WTH is going to happen to outstanding debt still tied to the index at that time?
there will be a new benchmark
I deal with mostly agency debt so it's been a while since I saw a note tracking LIBOR, but yeah you're right. The standard fine print appears to be that if the index is no longer available the alternative index becomes the basis for the new rate.
More like a return to more historical ones. LIBOR in the US was a subprime residential index in the 90's.
MTA/12MAT and various US treasuries will lead the way.
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