A key interest rate for more than $500 trillion of securitiesworldwide will be replaced by a benchmark subject to greatergovernment control, according to a plurality of globalinvestors.

Forty-four percent of those responding to a quarterly BloombergGlobal Poll said the London interbank offered rate, known as Libor,will be supplanted by a more regulated model within five years.Thirty-four percent predicted the rate will continue to be set bybanks in the current fashion, while 22 percent said they didn'tknow.

Confidence in Libor has waned as authorities investigate whetherfinancial firms rigged the rate to profit on derivatives positionsand hide how difficult it was for them to borrow money duringcredit-market turmoil in 2008.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.