Abstract:
Used globally, Libor is very widely referenced in derivatives, loan and securitization documentation, floating rate notes (FRN ) and in a range of users lending instruments, such as mortgages and student loans (BoE, 2019).
According to The Working Group on Sterling-Risk Free Reference Rate, since mid 2017€ the attention for the well-functioning of financial markets has increased and it has increased the need€ to accomplish the “transition away from Libor and to include more robust fallbacks in contracts referencing” (The Working Group on Sterling Risk-Free Reference Rates, Bank of England, Dec 2019) for contracts that will expire beyond 2021, which is the end-date stated by the FCA for the use of the benchmark
