Article: Libor Replacement Race Heats Up

Article - Media, Publications

Libor Replacement Race Heats Up

Julia-Ambra Verlaine, 13 May 2021

New contenders are emerging in the race to get rid of the London interbank offered rate by year-end.

Bank of America Corp. and JPMorgan Chase & Co. traded the first complex derivative using a Bloomberg index crafted to replace Libor, exchanging $250 million worth of an interest-rate swap earlier this month. The Bloomberg Short Term Bank Yield Index competes with the alternative preferred by regulators including the Federal Reserve Bank of New York. Continue reading “Article: Libor Replacement Race Heats Up”

Article: Libor-Replacement Competitor Gains Strength From New Offerings

Article - Media, Publications

Libor-Replacement Competitor Gains Strength From New Offerings

Julia-Ambra Verlaine, 19 April 2021

Financial industry pioneer Richard Sandor is ramping up his efforts to compete in the race to replace the London interbank offered rate, which helps set borrowing costs on everything from mortgages to business loans.

Mr. Sandor—who helped create interest-rate futures in the 1970s and launched his own replacement for the scandal-marred short-term interest-rate benchmark in 2019—is expanding offerings to include one-month and three-month borrowing rates. Ameribor is set on the American Financial Exchange, which was founded by Mr. Sandor and is where banks lend to each other through mutual lines of credit. Some small and medium-size lenders favor Ameribor because it changes with their funding costs. Continue reading “Article: Libor-Replacement Competitor Gains Strength From New Offerings”