# Normal Libor Market Model

Is anybody using normal Libor Market Model (LMM) (as opposed to shifted lognormal LMM)? It could be one of the approaches to dealing with negative rates. If you do, have you encountered any theoretical or practical difficulties with it? Thank you.

• Thank you. On an even more basic level, isn't the marginal distribution of forward bond price $P(t,T_{k-1},T_k)=(1+ F(t,T_{k-1},T_k) \tau_k))^{-1}$ weird? Assuming $T_k$-forward measure, for simplicity, it is reciprocal normal (!), negative valued etc. – ir7 Jan 29 '18 at 14:13