Banking Law

Libor ‘Big Bang’ Faces Headwinds, Barclays Strategists Warn (1)

Jan. 15, 2021, 3:17 PM

A synchronized exit away from Libor by clearing houses could prove tough for the vast global interest-rate derivatives industry, according to strategists at Barclays Plc.

That’s because they may be understating the scale of swaps that will still be clinging to the London interbank offered rate by the time of the proposed market reset, an event Barclays refers to as the second “big bang.”

It’s a note of caution for CME Group Inc. and LCH Ltd., which, based on current figures, are looking to transfer more than a notional $150 trillion of Libor-linked contracts to replacement rates in the weeks...

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