Libor transition fuels sales of risky corporate debt



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Wall Street’s move away from Libor is fueling sales in the scorching market of risky business loan bundles.

Managers of secured loan bonds – securities made up of bundled loans with undesirable credit ratings – are rushing to close deals before the year-end drop of the London interbank offered rate. The benchmark interest rate index underlies billions of dollars in financial contracts, but was to be phased out after a manipulation scandal.

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