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What is libor

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Reference no: EM133056877

Finance Executives Look to Advance Libor Transition in 2021 was a headline in the Wall Street Journal in December 2020.

Banks face a Dec. 31, 2021, deadline to replace Libor with alternative rates for new contracts following a years-long transition effort.  The phase-out is forcing finance executives to take stock of their contracts, communicate with banks and investors and adjust their interest-rate cost calculations.

  • What is Libor?
  • Why is it being replaced?
  • What are some of the differences between Libor and its likely successor, the Secured Overnight Funding rate (SOFR)?
  • Are banks ready for the change?
  • What are some of the complexities associated with the transition?

Reference no: EM133056877

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