Has LIBOR Lost Its Stature in Derivatives Markets? Case Solution
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: October 31, 2016
In April 2016, a big U.S. exclusive trading group in New York, with a considerable fixed-income portfolio, was disputing exactly what deduction rate to utilize to value the group's interest-rate swap portfolio. The counterparties to these switch were significant banks, and the offers were collateralized. Criticisms about making use of the London interbank used rate (LIBOR) as a standard for valuing these swaps were distributing, and there were statements that LIBOR was being controlled. There was discuss an option, almost "safe" recommendation rate that might possibly be introduced throughout 2016. Was it time for the trading group to replace a few of its developing LIBOR-based interest-rate swaps with over night index swaps.
Related Case Solutions & Analyses:
Spartan Stores Inc.: Reengineering for Efficient Consumer Response
EQUITY CAPITAL RAISING: THE SEO OF PETROBRAS 2010 (B)
The Strategic Investor Takes the Driver’s Seat
Shadow Banking
Financial System Fragility
Investment Report
Altoona State Investment Board: July 2012
Investment Analysis, Oil prices and the strength of the Dollar
Lin TV Corp
Corporate Governance: The Jack Wright Series #3-Board Selection
