Markets

CIARAN O'HAGAN of SocGen: Libor needs reform

Part 1 (recorded on Thu 28 April 2008): Libor - the benchmark for interbank borrowing costs - has become unreliable in some situations under the stress of the credit crisis, according to a leading European strategist. Ciaran O'Hagan, head of Paris interest rate research at Société Générale, says the "scorecard" for Libor has been "mixed' recently. He contrasts the "brutal upward adjustment" of the dollar Libor with the more gradual rise of the European rate (Euribor) which is "probably a more reliable indicator".