The volume of this borrowing has been declining, which means that LIBOR has become more reliant on the judgment of experts rather than actual transactions. In contrast, CDOR is a bank lending rate and was originally developed by the banks themselves to facilitate the calculation of a benchmark rate for the Banker’s Acceptance (BA) market.
Let me also say that we do not underestimate how weaknesses in the West will leave their imprints upon Asia, upon us. Although better off than other jurisdictions, economies in our region are also experiencing an economic slowdown. Coupled with the deleveraging in Europe, Asia will feel some of the repercussions, either from re-leveraging, capital inflows and/or stronger local currencies.