The London Interbank Offered Rate, or LIBOR for short, is scheduled to be phased out at the end of 2021. Despite this major development that’s occurring in just over two years, LIBOR rates still serve as benchmarks for trillions of dollars in securities across the globe. LIBOR serves as a reference rate for many bond investments, like floating-rate notes, bank loans and some preferred securities.  It still serves as a benchmark for many consumer loans as well, including margin loans, pledged-asset lines and variable-rate mortgages.

In other words, LIBOR doesn’t just affect investors, but also consumers. If you have a variable-rate mortgage or a pledged-asset line, this transition may affect you. Find out more from this RTD news update here.