Libor may be broken, but it won’t be replaced

Libor has become the latest whipping boy of the financial markets. It’s volatile. It doesn’t have the same relationships with other products it used to. It may even be being manipulated. But calls to scrap Libor as the main reference rate are at best naïve, at worst stupid. Put simply, Libor is too ubiquitous to be replaced. And in a broken financial system, it would be a miracle if Libor wasn’t broken.