LIBOR

Alternative Reference Rate

·       A forward-looking estimate based on panel bank submissions, with term rates from day 1 to 1 year.

·       A backward-looking (overnight) rate, published daily.

·       Includes both a term and credit premium

·       Proxy to risk free, no term or credit premium embedded

·       Based on narrow range of contributor banks

·       Based on robust, very liquid underlying markets, reflects actual transactions

·       Quoted on the same basis and time for all five currencies

·       Different methodology and publication timelines for each currency

·       Led by Private sector

·       Led by Central banks (except SARON)