The slow death of a critical benchmark interest rate will produce a series of compliance headaches for companies stretching over the next few years.
Rocked by allegations of manipulation and fraud, the London InterBank Offered Rate, or LIBOR, is the benchmark interest rate underlying hundreds of trillions of dollars in various forms of variable debt throughout the global economy. The International Swaps and Derivatives Association says the total notional exposure across derivatives, bonds, loans, and other instruments is estimated at $370 trillion.
