A rush on Libor fallbacks to head off holdouts
Concerns that valuation changes will scare some off adoption may be accelerating Isda timeline
The International Swaps and Derivatives Association is giving itself till the end of this year to implement a framework to wean swaps off Libor. Why the timetable? Observers say the schedule is meant to head off fears that some will refuse to move if it becomes clear they will lose out.
“Some firms could make the economic assessment that they’re better off not making the transition,” says Subadra Rajappa, head of US rates strategy at Societe Generale. Other well-placed market participants have
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