The Financial Conduct Authority (FCA) has recently announced that LIBOR, the underlying rate in around US$350 trillion worth of financial contracts will be abolished by the end of 2021. While the transition to a LIBOR alternative in 2021 seems a long way away, we believe investors should start preparing.
The latest issue of THINK Bonds outlines the reasons for the decision, exploring the potential impacts and the likely successor to LIBOR in the UK. The article also aims to address some of the unanswered questions for investors.
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