December 07, 2020
Road to Risk-Free Rates in Japan
Generate PDF
To read complete article visit Eye On IBOR Transition Blog
In response to the UK Financial Conduct Authority’s proposed discontinuation of LIBOR, Japan, like other countries that rely on LIBOR as the preferred reference rate, has had to consider alternatives for its reference rate that uses USD LIBOR as a component.
In 2019, the Cross Industry Committee on Japanese Yen Interest Rate Benchmarks, together with the Bank of Japan, held a public consultation on the choice of alternative benchmarks to JPY LIBOR, the results of which revealed an industry preference for two alternatives: the Tokyo Interbank Offered Rate (“TIBOR”) and the Tokyo Overnight Average Rate (“TONAR”).
Read the full article (PDF).
The post Road to Risk-Free Rates in Japan appeared first on Eye on IBOR Transition.