nakedempire


The American Empire in a Changing World



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Tuesday, July 24, 2012

''A world without Libor or interest-rate derivatives''

From IFR

"IS LIBOR FINISHED as a benchmark? Maybe. Are composite rates created using short-term interbank loans the most relevant benchmarks on which to base non-bank borrowing in the capital markets? Not necessarily. What would happen if there were no floating rates and everything was based on spreads over official policy rates? Not sure. Would the world come to an end if there were no interest-rate derivatives? No."

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