The Libor (London Interbank Offered Rate) is an indispensable instrument for the entire financial sector, the one that gives direction. Published daily in London since 1986, this reference, on which $300 trillion of financial contracts are indexed, will disappear at the end of 2021, along with the other interbank rates (Ibor).
It will be replaced by SOFR (Secured Overnight Financing rate) in the US, SONIA (Sterling Overnight Index Exchange) in the UK, TONA (Tokyo Overnight Average rate) in Japan, ESTER (EURO Short-term rate) in Europe, and SARON (Swiss Average Rate Overnight) in Switzerland.
According to my reading of various opinions on the matter, these new rates are considered to be more transparent and robust.
by Doğan Erbek and STF Team