Financial Times FT.com

Lenders examine Libor alternatives

By Gillian Tett

Published: April 16 2008 21:05 | Last updated: April 16 2008 21:05

Investment banks are incr­easingly exploring alternatives to the use of Libor – or the London interbank offered rate – amid frustration with the way that the index is constructed.

In particular, some banks are now calling for the greater use of the overnight index swap (OIS), or other market measures, to replace the use of Libor in derivatives contracts and other financial structures.

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