For over 40 years, the London Inter-Bank Offered Rate (LIBOR) has served as the globally accepted key benchmark interest rate that indicates borrowing costs between banks. However now, amid a flurry of scandal and manipulation, LIBOR will soon be put to bed. In this episode, we explore its potential successors and what effect this change will have on the life insurance premium financing industry.
Note regarding the use of LIBOR as a reference rate: The discontinuation of LIBOR as a reference rate, currently expected to occur after 2021, could have a significant impact on the investment products, the entities who sell these products, and the overall financial market, in general. Click here for more information.