Financial Times And Reuters Cover Oliver Wyman’s LIBOR Report

The Financial Times and Reuters covered Oliver Wyman’s new LIBOR report titled, “Changing the World’s Most Important Number: LIBOR Transition.”

The Financial Times cited data from the report in a story titled, “ICE to begin futures trading in new alternative Libor rate.” This article discusses how the Libor-lending rate administer, the Intercontinental Exchange, will begin trading futures on the alternative benchmark rate intended to replace Libor. According to Oliver Wyman, it is estimated that the total notional exposure to Libor - in the form of mortgages, consumer loans, credit card rates, derivatives, and bonds - is around $240 trillion. To read the Financial Times article, click here.

Oliver Wyman partner, Adam Schneider, was quoted in a story titled, “Companies switch to one-month Libor cut loan costs,” by Reuters. This article explores how companies are cutting their borrowing costs to switch to short-term Libor rates. According to Schneider, “there is little doubt Libor will get used less and less, but [markets] still needs to deal with the fundamental question that there are tenors out there, and we have to have some liquidity in the market before new products are introduced and older products are transitioned or grandfathered in.”

To read the Reuters article, click here.