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The end of LIBOR to be anything but simple; A host of headaches predicted in phasing out benchmark for fixed income, derivatives deals

Mar 08, 2021 - Pensions & Investments

No one ever said replacing LIBOR, the predominant derivatives and fixed-income valuation benchmark supporting hundreds of trillions of dollars in contracts, would be easy.

With millions of investments tied to the London interbank offered rate, such as interest-rate swaps and long-duration fixed income, investors and their service providers could have to renegotiate with counterparties on a new benchmark, but coming to an agreement isn't so simple, sources said.

"I have read hundreds ...