Libor will remain important benchmark, ISDA CEO Pickel says

10/22/2013 | Risk.net (subscription required)

ISDA CEO Robert Pickel says moving away from the London Interbank Offered Rate as a benchmark in over-the-counter derivatives transactions would be difficult because of pervasiveness of the rate and a lack of better alternatives. "One of the issues of using the overnight indexed swap rate, for example, is that it does not have a credit component, whereas Libor does, so building in a credit component into the contract is still an issue," Pickel said at the ISDA Asia-Pacific conference in Hong Kong.

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