Being a constant follower of overnight bank rates, I am fascinated with commentary regarding the end of LIBOR. LIBOR has not been around since the beginning of time, but only since January 1, 1986. So, being technically younger than I am, makes it hard to accept the fact that LIBOR is no longer useful. I hope to be useful for many more years.The big question is what replaces LIBOR.

Both the US and UK financial regulators are seeking to set up alternatives based upon actual transactions. Apparently, the lack of actual transactions became a major stumbling block for LIBOR in the past decade, along with accusations of rate fixing, etc.

However, since trillions of dollars rely on LIBOR and will rely on whatever comes next, the importance of LIBOR and its successor cannot be understated.

I will continue to keep you posted as additional information is provided prior to the end of LIBOR in 2021.