
November 8, 2023
Talking Shop: Bloomberg Usage Fees for IBOR Fallback Rates
Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected]. Context: For some corporates, the transition from the London interbank offered rate (Libor) to risk-free reference rates—such as the Secured Overnight Financing Rate (SOFR)—included the decision to adopt so-called fallback language in existing derivative contracts covered by the International Swaps and Derivatives Association (ISDA). During the yearslong process, ISDA created the IBOR Fallbacks Supplement to…