Life After LIBOR

60 Pages Posted: 6 Jun 2019 Last revised: 21 Oct 2020

See all articles by Sven Klingler

Sven Klingler

BI Norwegian Business School

Olav Syrstad

Norges Bank

Date Written: August 9, 2019


We examine the alternative reference rates that are set to replace the London Interbank Offered Rate (LIBOR) as benchmark rate by the end of 2021. After providing the relevant background, we show that: (i) depending on the marginal lenders, tighter regulatory constraints can either increase or decrease the alternative benchmarks; (ii) increases in the amount of government debt outstanding increase the alternative benchmarks, more so for collateralized rates; (iii) more central bank reserves lower the alternative benchmarks. In addition, we show that term rates based on the alternative reference rates can be detached from banks' marginal funding costs.

Keywords: Benchmark Rates, Financial Regulation, Libor, Repo Rates, Collateral

JEL Classification: E43, G12, G18

Suggested Citation

Klingler, Sven and Syrstad, Olav, Life After LIBOR (August 9, 2019). Journal of Financial Economics (JFE), Forthcoming, Available at SSRN: or

Sven Klingler (Contact Author)

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442

Olav Syrstad

Norges Bank ( email )

P.O. Box 1179
Oslo, N-0107

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