The End of LIBOR is Nigh

As the 2021 deadline approaches, banks brace for what has been called the financial market equivalent of Y2K.

Yan Barcelo 11 June, 2021 | 3:08AM
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Immediately after the end of this year, LIBOR will end. If you’ve never heard of it before, you might think it doesn’t matter. But the London Interbank Offered Rate, or LIBOR, is the world's most widely used benchmark for short-term rates, the rate that banks pay each other for unsecured overnight loans.

It is the reference rate on which is based anywhere between US$ 300 and US$ 400 trillion worth of mortgages, corporate bonds and most financial derivatives. As LIBOR shifts, so do profits and losses accrue on all those countless contracts. It has been called the ‘World’s Most Important Number’.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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