Libor Alternatives Have Their Own Issues

Market overseers have been pushing the industry to come up with a credible replacement for U.S. dollar Libor in the wake of a rigging scandal

Efforts to replace the compromised Libor financial benchmark are running into their own problems, in part thanks to new rules governing money-market funds.

Libor, a survey of overnight bank borrowing costs that’s linked to $350 trillion of complex derivatives and trillions of dollars in loans to consumers, companies and governments, lost credibility during an industrywide rigging scandal several years ago. Banks were found to have manipulated the benchmark for their own gains.