Tough legacy

Interest rates - reference rates - LIBOR transition.

In the context of LIBOR transition, 'legacy' contracts were contracts (1) referencing LIBOR (2) that did not include fallback provisions that catered satisfactorily - or at all - for the continuation of the contract upon LIBOR being permanently discontinued.

'Tough legacy' contracts were ones that both (1) contained inadequate fallbacks and (2) were impossible or very difficult to amend in advance of the deadline for the cessation of LIBOR.

LIBOR ended in September 2024.

See also

• Bilateral
• Bond
• Bondholder
• Consent solicitation
• Derivative
• Fallback
• Financial Conduct Authority (FCA)
• Hedging
• Legacy
• LIBOR
• Parliament
• Risk-free rates
• Syndicated loan
• Synthetic LIBOR
• Transition

Other resource

• The end of LIBOR - Press release - Bank of England - 1 October 2024