Lack of volume in derivatives tied to other benchmarks is driving many asset managers, traders, and corporate treasurers to continue using LIBOR-based derivatives.
The delay in LIBOR retirement just puts off the inevitable; lawmakers need to clarify what benchmarks will replace LIBOR in financial contracts whenever it finally ceases to be used.
Proposed New York state law that would shift existing contracts from LIBOR to SOFR at the end of 2021 is having trouble finding support from legislators.
U.S. policymakers' use of LIBOR as the benchmark for the $600 billion Main Street Lending Program increases challenges of moving to a replacement rate.