Chart of the Day: In defence of (a reformed) Libor

The London interbank offered rate's status as a key global reference rate may be under threat, but reforming rather than replacing it could make the more sense, according to new research

There has been much public clamour to supplant the much-maligned London interbank offered rate with a different benchmark to underpin the $350 trillion of financial contracts around the world

But new research out this week suggests that Libor may be the best of the bunch as a reliable benchmark while the advantages of other measures would not outweigh the cost of making the switch.

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