I would like to discuss my approach toward modelling of interest rates with respect to its downsides and advantages.
My problem is to forecast daily LIBOR 3M and LIBOR 1M over a particular time horizon, let say 10Y.
I was thinking about applying Vasicek interest rate dynamics and treating realized historical LIBORS for 3M and 1M as instaneous rates and calibrating the model to them via regression approach.
This simplified apprach won't be used for any derivative valuations, therefore I am accepting some limitations, like no fit to current interest rate curve.
Do you think that my approach is acceptable in the light of the aim of this analysis?