Premium
Replacing LIBOR: Is BTFR the Right Choice?
Author(s) -
Tokic Damir
Publication year - 2018
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22307
Subject(s) - libor , treasury , interest rate , economics , benchmark (surveying) , actuarial science , financial economics , monetary economics , political science , law , geodesy , geography
The Alternative Reference Rate Committee (ARRC) has recently recommended replacing the London Interbank Offered Rate (LIBOR) with the newly created Broad Treasury Financing Rate (BTFR). This article discusses the drawbacks of LIBOR, and whether BTFR is the right choice for the new interest rate benchmark. © 2018 Wiley Periodicals, Inc.