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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.


Similar arrangements in other contexts.

See also

External links

A World without Libor - FCA speech - July 2018

The future of LIBOR: what you need to know, ACT & LMA, March 2018

2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May