LIBORt

LIBORt is a concept for a forward-looking term rate intended to provide a reliable benchmark for unsecured interbank lending, similar in purpose to LIBOR but focused on predefined maturities. It is discussed as a potential replacement or supplement to legacy LIBOR in markets that require a visible term reference rather than an exclusively overnight rate.

Background for LIBORt stems from the reforms that phased out or replaced LIBOR for many tenors and products after concerns about manipulation and resilience. While risk-free rates like SOFR dominated new benchmarks, market participants identified a continuing need for term references that align with common financing horizons, such as one, three, six, or twelve months. LIBORt is proposed as a way to restore a forward-looking term structure within a reform framework.

Methodology and structure would aim for transparency and resilience. A LIBORt calculation could combine actual transactional data where available with a curated panel of contributors, supported by a pre-specified rule set for submissions, trimming, and averaging. Tenors would cover standard maturities, and fixings would be published at fixed times with safeguards to reduce volatility and the potential for manipulation. Governance would involve oversight by a market-utilities body or regulator-led committee, with ongoing review and calibration.

Status and use are hypothetical at this stage. LIBORt has been discussed in industry forums and academic work as a means to address term-rate needs, but it has not achieved broad regulatory approval or substantial market deployment. Adoption would require formal governance, pilot testing, and alignment with other benchmark reforms.

See also: LIBOR, SOFR, risk-free rate, benchmark reform.