US Libor transition would get 'massive' spur from forward-looking rate, JPMorgan executive says

4 December 2019 9:08pm
The US Libor replacement’s reliance on an overnight interest rate rather than an estimated future benchmark creates “huge” uncertainty that’s impeding market participants’ switch to the new benchmark, a JPMorgan Chase executive said.

“The mentality of the market is very much, 'I need a market in advance where I know my payment,’” JPMorgan managing director Tom Pluta said at a recent government forum.