---
title: Caution with Credit-Sensitive Rates
url: https://www.ml-quant.com/papers/ssrn/4971400/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4971400
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4971400
featured: 2024-10-03
citations: unknown
topic: Risk, Credit & Banking
---


# Caution with Credit-Sensitive Rates

The article discusses the pros and cons of credit-sensitive rates as alternatives to LIBOR, emphasizing their risk management benefits and vulnerability during market stress.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4971400
- Identifier: SSRN 4971400
- Released: 2024-09-30
- First featured: Quant Letter No. 68 (2024-10-03): https://www.ml-quant.com/issues/2024-10-03/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

## Related

- [The Interdependent Relationship between Interest and Non-Interest Income of Indian Banks: A Study of Diversification of Income, Risk, and Traditional vs. Non-Traditional Banking Activities](https://www.ml-quant.com/papers/ssrn/4972716/): Diversification and Risk: The article studies the transition of Indian banks from earning through interest to non-interest sources, and how this diversification affects risk in both traditional and non-traditional banking.
- [Improved Hardness Results for the Clearing Problem in Financial Networks with Credit Default Swaps](https://www.ml-quant.com/papers/arxiv/2409.18717/): The study investigates computational issues in banking networks, particularly in calculating clearing payments after financial shocks. It offers enhanced solutions, including two that are proven to be complete in the realm of real numbers.
- [Optimal mutual insurance against systematic longevity risk](https://www.ml-quant.com/papers/arxiv/2410.07749/): The article discusses how two collective pension funds can mutually insure each other against systematic longevity risk, with the success of this insurance depending on how similar their risk preferences are.
- [Sovereign vs. Corporate Debt and Default: More Similar than You Think](https://www.ml-quant.com/papers/ssrn/4955265/): Despite their fundamental differences, high-yield corporate and emerging market sovereign bonds have displayed similar risk-return patterns, default rates, and haircuts over the past two decades.
- [Enterprise Risk Management and Management Earnings Forecasts](https://www.ml-quant.com/papers/ssrn/4959367/): The use of Enterprise Risk Management (ERM) enhances the likelihood and precision of management earnings forecasts by reducing fundamental volatility and improving managers' information assessment skills.
- [Lapse-supported life insurance and adverse selection](https://www.ml-quant.com/papers/arxiv/2409.01843/): The article talks about how lapse-supported premiums can raise the costs of adverse selection in life insurance, especially when high-risk individuals keep their policies longer. It also proposes three ways to handle surplus from policy lapses.