LIBOR – and regional IBOR rates – have helped determine the cost of all sorts of global borrowing from mortgages and credit cards to interest-rate swaps. Over the last decade LIBOR/IBOR benchmarks have been seen as outdated. Global / regional Central Banks (CBs) and Monetary Authorities (MAs) have been working to develop benchmarks that are a truer reflection of the cost of capital and based on actual transactions. This session will explore how the new benchmarks change the data requirement and analytic landscapes in Asia/Pacific.
- Have Asia CBs/MAs, institutions and end users come to consensus on IBOR alternatives; what are the new regional benchmarks – what do they reflect?
- What are the complications in calculation for adjustments and analytics for existing contracts?
- Are (new) regional loan/derivative agreements using a single or multiple benchmarks?
- How do these benchmarks make it more difficult to predict payments?