Rates
A Guide to the World’s New Benchmarks After Libor
Here’s how to make sense of the dizzying array of acronyms that have sprung up in major markets.
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For about 50 years, the London interbank offered rate has helped determine the cost of borrowing around the world, from student loans and mortgages to interest-rate swaps and collateralized loan obligations.
Libor, derived from a daily survey of bankers who estimate how much they would charge each other to borrow, was simple, effective, ubiquitous, and seemingly reliable.