How do you use LIBOR?

ICE Benchmark Administration (IBA) has been consulting on proposals for the evolution of the LIBOR benchmark. Have your say now. IBA’s Roadmap paper on the Evolution of LIBOR, published 18 March 2016, sets out a new standardised submissions methodology for contributor banks. While there are no plans to discontinue any of the current 35 LIBOR rates, it may be that certain currency / tenor rates are harder to centrally calculate than others, hence it would be very useful to understand the usage and also the available alternatives and fall-backs for each of the LIBOR rates. As part of this process,

Apple Inc. sheds light on Libor

Bloomberg broke it thus:

Apple’s $1 billion of floating debt due 2016 pays 5 basis points, or 0.05 percentage point, more than the three-month London interbank offered rate, and its $2 billion, five-year floater yield 25 basis points more than the benchmark, Bloomberg data showApple Raises $17 Billion in Record Corporate Bond Sale, Charles Mead & Sarika Gangar, April 30, 2013 10:42 pm GMT+0100, http://www.bloomberg.com/news/2013-04-30/apple-plans-six-part-bond-sale-in-first-offering-since-1996-1-.html..

Libor: Banks are the risk

We suspect that the current LIBOR process is “doing what it says on the tin”

Under current circumstances, contributors of rates to Libor, Euribor and other index rates are probably taking more care in their submissions than they have ever taken.

Libor: What should it look like?

“LIBOR scandal forces Barclays from UAE rate panel”, the Telegraph headline says as I write this. And the press is printing well meaning but impractical “solutions” to the Libor problem written by academics and pundits.

Going back to basics, we need reference rates like Eibor (“E” for Emirates), Libor and Euribor.

Living in interesting times

Monday, 07:25 It is a fine autumn morning.

I am writing this while waiting on the sea front at Brighton for my 7:30 rendezvous with a Labour Party representative who will give me my security pass for the “secure zone” in which the Party conference is taking place.