Wed, Feb 17, 2021
As 2021 gets underway in earnest, we are seeing many important developments that will help speed up the progress on transition. The ISDA protocol is live and the IBA consultation on the cessation date has finished opening the way for announcements, setting out the final dates for LIBOR.
Work on the cash products transition is also gaining momentum, with consultation on the legacy bond transition in the UK, development of the credit adjustment for SOFR in the U.S., and increasing focus beyond dollar and sterling LIBOR.
We are also observing a shift to increase awareness among the broader population of LIBOR users outside of financial institutions and an increasing focus on the operational and regulatory aspects of the transition, including reporting and documentation.
General News
Phasing Out LIBOR: What Private Debt Investors Need To Know - from the Kroll team: Jennifer Press and Aaron Read, Private Debt Investor
Libor Exit to Cost Global Banks $100 Million Each This Year, Bloomberg
Regulatory Updates
LIBOR – Are You Ready for Life Without LIBOR From End-2021?, FCA
Key Resources for Firms Transitioning From LIBOR, Bank of England
"Pushing Ahead with SOR-SORA Transition in 2021", Monetary Authority of Singapore
Market Details
New IBOR Fallbacks Take Effect for Derivatives, ISDA
IHS Markit to Publish Daily Credit Spread Adjustment for SOFR from Q2 2021, IHS Markit
Bloomberg Launches Short Term Credit Sensitive Index to Support IBOR Transition, Bloomberg
Investors Call On Companies To Take Urgent Action And Transition Their Libor-linked Bonds, The Investment Association
The replacement of London Inter-Bank Offered Rate (LIBOR) is a multiyear transformation, and the impact will be a seismic shift in core operations, vendor relationships and loan products.
Download the LIBOR Transition Toolkit to help gather the documentation needed to assess your LIBOR-linked exposure.
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