RT Journal Article SR Electronic T1 LIBOR—Hazards on the Road to Reform JF The Journal of Structured Finance FD Institutional Investor Journals SP 8 OP 13 DO 10.3905/jsf.2018.24.1.008 VO 24 IS 1 A1 Stephen S. Kudenholdt YR 2018 UL https://pm-research.com/content/24/1/8.abstract AB The London Interbank Offered Rate (LIBOR) is one of the most widely used reference rates in the world of finance. Recent information indicates that nearly $200 trillion in contractual exposures reference USD LIBOR, of which roughly 95% is notional amount exposure under derivatives contracts, with approximately $8 trillion in exposure under corporate loans, consumer debt (primarily mortgages), floating-rate notes, and securitized products. As described in this article, the future of LIBOR is uncertain, and it may be phased out altogether in favor of new reference rates based on much more robust market data. This article describes the reasons for LIBOR’s potential demise, its replacement in the United States, and the impact on legacy assets and asset-backed securities (ABS) transactions in the United States.TOPICS: Legal and regulatory issues for structured finance, legal/regulatory/public policy