Although sections of the market seek an extension to the date for phasing out Libor, treasury officials, bankers and lawyers say they are working under the assumption there won’t be any delays.
Financial firms can’t seem to come to an agreement on the unofficial “pre-cessation” trigger that will signal the beginning of the end for Libor. Meanwhile, SOFR faces some controversy.
As the cliff-edge of Libor’s demise approaches, corporates are caught in a chicken and egg problem of alternative benchmarks with limited liquidity. Can it be fixed?