Fallback
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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
