In July 2011 Risk Magazine reported that some market operators believe that in 2007 and 2008 Libor rates underestimated the real cost of funding of banks since “some banks were putting in artificially low rates” (Wood, 2011). This is currently the focus of some lawsuits and investigations....

In response to the financial crisis, a plethora of new research appeared which attempted to understand, incorporate, and delineate the most significant changes observed in the market. Editors Massimo Morini and Marco Bianchetti have both experienced first-hand how market patterns and...