Fallback

1. Interest rates - reference rates.

A 'fallback' is a specified alternative reference interest rate, for use in the event that the originally envisaged reference rate is unavailable.

"Whilst fallbacks are contained in existing documentation should a reference rate become (temporarily) unavailable, these were not drafted as a long-term solution [to the permanent retirement of LIBOR]."

ACT Briefing Note, Transition to risk free rate benchmarks.

LIBOR ended in September 2024.

2.

Similar arrangements in other contexts.

See also

• Alternate Base Rate
• Benchmark
• Bloomberg Index Services Limited (BISL)
• Hardwired
• Legacy
• LIBOR
• Reference rate
• Risk-free rates
• Transition
• Waterfall
• Waterfall methodology

Other resource

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