The world of financial regulation is, unlike global capital, respectful of national boundaries. That’s especially true when those boundaries belong to the biggest of all financial players — the US. So we’ve been somewhat surprised that the top ranks of UK officialdom have seen fit to wade into how the US is handling efforts to transition from Libor to alternative benchmarks to underpin floating-rate financial products (of which, in America at least, there are many). We think, for the reasons set out below, this will have some implications for how businesses based in Britain do dollar borrowing. As with everything Libor-related, we need to backtrack a little and explain what’s going on here. The nearest thing the US has to an official Libor replacement is the Secured
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The world of financial regulation is, unlike global capital, respectful of...