Dollar Libor transition heads for 'hardwired approach'

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Dollar Libor transition heads for 'hardwired approach'

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Graph illustration showing London Inter Bank Offer Rate - LIBOR growth. Macroeconomics indicator concept. | mattz90 - stock.adobe.com

The US Alternative Reference Rates Committee (ARRC) has updated its reference rate language for the move away from dollar Libor, with the group now recommending loans that mature after the transition have an automatic replacement reference rate that does not need special consent to be imposed. But some legal experts warn that there are still major issues with adopting this approach.

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