Floating-rate notes in a fix

摘要

Legal advisers to a Bank of England working group have warned that over £312bn of outstanding sterling-denominated floating-rate notes that are due to mature after 2021 could effectively become fixed if nothing is done to address their references to Libor. The widely used benchmark is being phased out and will no longer be calculated from the beginning of 2022. That means potentially all notes referring to Libor may be stuck at the last rate at which it was calculated, December 31 2021.