Odd Lots The Case for AMERIBOR As The Replacement for LIBOR
Jun 3, 2020
Richard Sandor, Chairman and CEO of the American Financial Exchange, is a pioneer in financial markets. In this discussion, he champions AMERIBOR as a strong alternative to LIBOR, emphasizing its potential to enhance market liquidity and affordability. Sandor tackles skepticism surrounding new benchmarks and highlights the necessity for transparency and adaptability in financial instruments. He also advocates for a diversified approach to reference rates across financial sectors, aiming to reshape the future of benchmarked transactions.
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AMERIBOR's Origin
- Richard Sandor, a financial innovator, read about LIBOR manipulation in 2011.
- This sparked his 10-year journey to create AMERIBOR, a LIBOR replacement.
LIBOR's Anomaly
- LIBOR is unusual as a single benchmark for an asset class, unlike diverse equity markets.
- This single benchmark, based on polls, is a risky foundation for a global economy.
AMERIBOR's Principles
- AMERIBOR prioritizes transparency, regulation, and transaction-based data.
- It also focuses on American banks, creating a domestic benchmark.