From the Document: "LIBOR [London Interbank Offered Rate] is a key benchmark interest rate underpinning many financial contracts, but it is being discontinued between December 2021 and June 2023. This In Focus discusses efforts to transition away from the use of LIBOR in financial products in order to avoid disruption if LIBOR disappears, including Division U of P.L. 117-103. [...] LIBOR is a benchmark or reference rate that helps financial market participants gauge prevailing interest rates. In the United States, many financial instruments are tied to dollar LIBORs, including certain floating-rate loans, bonds, securitized products, and financial derivatives. For example, an adjustable mortgage rate might be set at LIBOR plus a fixed markup. Each month, the rate on the mortgage would be reset based on the prevailing LIBOR. A type of derivative called an interest rate swap might also reference LIBOR. One party to the swap would receive a periodic payment based on a predetermined fixed interest rate, while the other party would receive a payment tied to a rate that adjusts based on the current LIBOR. As of 2020, LIBOR was referenced in an estimated $223 trillion of financial instruments."
CRS In Focus, IF11315
Congressional Research Service: https://crsreports.congress.gov/