20 min read 29 May 20
Summary: LIBOR will continue giving way to replacement rates ahead of its retirement by the end of 2021. We will soon be familiar with SONIA in the UK, ESTR in Europe and SOFR in the US. Work continues across M&G and the industry to ensure as smooth a transition as possible to the new rates. This bank of Frequently Asked Questions aims to assist understanding of what’s happening, why it’s happening and how we expect it might affect investments.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.