The ARRC’s fallback recommendations represent a significant body of work on the part of a wide set of market participants and set out a robust and well-considered set of steps that expressly consider an end to LIBOR.2 I urge everyone to avail themselves of this work; it is, again, important for prudent risk management and your fiduciary responsibilities that you incorporate better fallback language.
Business managers, with little opportunity to raise prices, have moved aggressively to stabilize cash flows by trimming workforces. These efforts have limited any rise in unit costs, attenuated the pressure on profit margins, and ultimately helped to preserve the vast majority of private-sector jobs.