Some U.S. and European treasurers say they don’t view Libor as an accurate rate to use in pricing loans, according to a survey conducted by IFR, Reuters reports. But the treasurers don’t want to move to a different benchmark rate and say they prefer reforming how Libor is computed and having authorities keep closer watch over the process.
IFR surveyed 12 treasurers in the U.S. and Europe whose companies borrowed a total of $212 billion in the 12 months ended in April. The story notes that many other treasurers were not willing to participate in the survey “due to the sensitivity of the subject.”
Six of the 12 say Libor is not an accurate benchmark, but 10 of the 12 say they would not switch to a different benchmark.
See the full story here. For more coverage of Libor, see EU Lawmakers Probe Rate Rigging and Manipulation Possible in Benchmarks Besides Libor.