The upcoming transition away from Libor (London Interbank Offered Rate) and other IBORs (Interbank Offered Rates) is one of the most significant changes within financial markets for more than forty years – Are you ready for the LIBOR transition?
Libor was conceived to be straightforward to use and therefore utilised across various financial products and instruments. However, following Libor manipulation and a significant decline in the number of transactions being reported due to many banks moving away from funding their activities via the interbank market,the transition to Alternative Reference Rates (ARRs) is firmly underway.
Firms can take steps to prepare for these changes. In our whitepaper (downloadable for free below) are five structured steps in a checklist format that businesses can take to ensure they are well prepared for the changes.
Several considerations are highlighted, including interest rate hedges and swap impacts to ensure the same benchmark is used for the loan and swap where there may be a risk of mismatched payments where different methodologies exist.
Clarity is also provided on what index lenders will be switching to instead of the current Interbank offered rate.
Download our whitepaper
Our whitepaper ‘Are you ready for the LIBOR transition?’ can be downloaded for free below.