A statement from the Treasury's Office of Financial Research says, "The OFR posted a new website page today, entitled, "LIBOR Alternatives." LIBOR is an interest rate benchmark used as a reference rate. This reference rate reflects the general cost of large banks' borrowing that is not backed by collateral. U.S. dollar LIBOR plays a central role in the U.S. financial markets and economy. It is used to set interest rates on financial products such as mortgages and private student loans. The Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee (ARRC) to identify an alternative to LIBOR. The OFR is a member of ARRC and is collaborating with the Federal Reserve to explore alternative reference rates. The ARRC is considering two potential LIBOR alternatives: a secured repurchase agreement (repo) rate, and the Overnight Bank Funding Rate. The selection of an alternative reference rate is expected in 2017. The OFR is involved in the planning for the alternative reference rate and will play a role in its implementation." See also, Institutional Investors' odd "The New Risk Facing Money Market Funds."

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