View source for Financial Contract Fallback Rate (FC-FBR)

A [[Financial Contract Fallback Rate (FC-FBR)]] is a [[financial benchmark]] that specifies the [[rate]] to be used in [[financial contract]]s when the original [[interest rate]] benchmark is no longer viable.
* <B>Context:</B>
** It can be a critical component in the transition away from [[benchmark]]s like the [[LIBOR]] to alternative rates such as the [[Secured Overnight Financing Rate (SOFR)]].
** It typically comes into play following the permanent cessation of the original [[benchmark rate]].
** It is determined through a pre-defined process or [[methodology]], often involving a [[spread-adjusted compounded average]] of the alternative rate, calculated towards the end of the [[payment period]].
** It has been developed and endorsed by [[financial industry bodi]]es such as the [[International Swaps and Derivatives Association (ISDA)]] to ensure a smooth transition for existing [[financial contract]]s from [[LIBOR]] to alternative benchmarks.
* <B>Example(s):</B>
** [[Federal Reserve Board Fallback Rate (SOFR)]],
** [[ISDA Fallback Rate]]s,
** a [[LIBOR replacement]],
** an [[Alternative Reference Rate (ARR)]],
** ...
* <B>Counter-Example(s):</B>
** A [[Chatbot Fallback Rate]], 
** A direct [[replacement rate]] selected without the need for a [[fallback provision]].
** [[Interest rate]]s determined independently of any [[benchmark cessation event]].
** [[Variable rate]]s directly tied to an existing index.
** [[Prime Rate]],
** [[Fixed Interest Rate]],
** [[Interest Rate Swap]].
* <B>See:</B> [[IBOR Transition]], [[ISDA Protocol]], [[Risk-Free Rate (RFR)]], [[Benchmark Reform]], [[Benchmark Rate]], [[Risk Management]], [[Financial Conduct Authority (FCA)]].

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