U.S. Markets

Many investors want Libor to stay with improvements: Bank of America survey

NEW YORK (Reuters) - Many investors would like to see the Libor global interest rate benchmark to remain with improvements and to co-exist with a risk-free alternative, a Bank of America Merrill Lynch survey released late Wednesday showed.

Nearly 80 percent of the 164 respondents, consisting largely of asset managers and banks, said they believe the London interbank offered rate (Libor) should continue with a “more robust methodology,” the bank said in a note on its survey results.

Libor is a benchmark for $350 trillion worth of financial products worldwide including $150 trillion in derivatives.

Libor has been in regulators’ crosshairs since its credibility was tarnished by a rate-rigging scandal emerging from the 2007-2009 financial crisis. About a dozen global banks collectively have paid tens of billions of dollars in fines to settle the matter.

Reporting by Richard Leong; Editing by Chizu Nomiyama