Editorial: Libor is dead, long live Libor

Author: | Published: 17 Oct 2018

The 30+ year lifespan of the London interbank offered rate, more commonly referred to as Libor, has been marred in criticism and controversy.

Alarm bells had indeed been ringing for some time before October 2017 when the Financial Conduct Authority announced Libor was set to be shelved for good in 2021. The production of the rate itself depends on the calculations of a panel of over 200 banks across several continents, all which contribute to shaping $350 trillion worth of derivative and loan contracts. To say that Libor could be subject to manipulation is...