Global central banks recommended that LIBOR change following the Global Financial Crisis, due to the manipulation of the rate by some of the contributing banks. As a result, it is expected that LIBOR will progressively be replaced by other rates in the coming months.
LIBOR stands for the London Inter-Bank Offered Rate, which is the interest rate at which banks estimate they would be able to borrow money for a short period of time from another bank. This rate plays a central role in the pricing of bonds, derivatives and loans, as well as in the performance evaluation of certain funds.
Our Q&A provides information on the changes to LIBOR and how your investments with Janus Henderson may be impacted.Q&A on the changes to LIBOR