Gary Gensler, Chair of the US Securities and Exchange Commission (US SEC) commented on the LIBOR transition and on the risks associated with certain credit-sensitive rates sometimes used as alternatives to LIBOR. In particular, Gensler stressed that the Bloomberg Short-Term Bank Yield Index (BSBY) carries similar weaknesses to the LIBOR, particularly in terms of its modest underpinning market, and thus warned against its adoption for the replacement of the LIBOR.
