The London Interbank Offered Rate (LIBOR), arguably the most important benchmark in today’s financial markets, underpins trillions of dollars of derivatives and fixed income securities. However, due to flaws in how the rate is calculated via poll and risk of rate manipulation, in 2017 the Financial Conduct Authority announced that they would no longer compel top-tier banks to respond to the IBA poll after 2021--essentially declaring the end of LIBOR as a valid financial benchmark.
Read on to learn how this transition away from LIBOR will affect various fixed income asset types. For more information regarding how this affects your workflow and results as a FactSet client, please contact your account team or analytics specialist.
To learn how becoming a FactSet client can help you navigate this transition, speak to a FactSet Specialist.