LIBOR has been an endangered species for some time now. LIBOR, the rate that banks charge each other to borrow money, is slated to go by the wayside in 2021 and taking its place for USD will be something called the Secured overnight financing rate, or SOFR. Almost every part of the financial world is touched by LIBOR; it is plausibly the world’s most important number.
It is often said that those who do not remember the past are doomed to repeat it. With economics it’s no different, considering the world has experienced dozens of crashes and recessions, undoubtedly caused by acquisitive traders and lawmakers with few memories of the past.
The 1,000 Carolus guilder-bond, which is written on goatskin, is among five of the world’s oldest bonds that still pay interest. The document is a bearer bond, meaning the issuer needs to see it before paying out interest. The issuer will then write the payment date on the document. Interest payments were continuously recorded on the vellum document.