Adjustable-rate mortgages based on Libor may cost borrowers far more than comparable mortgages based on U.S. Treasury rates, according to research by the Federal Reserve Bank of Cleveland.

Roughly 90% of subprime mortgages are linked to the London interbank offered rate, or Libor, said the Cleveland Fed's research director, Mark Schweitzer, and its senior policy analyst, Guhan Venkatu.

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