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This report provides a guide to figuring out what is at stake with LIBOR and other interbank offered rates (IBORs). It addresses the challenges and risks, the development of alternative data or reference rates, and begins the process of replacing LIBOR well ahead of the expected end-2021 deadline.
Time is running out for market participants to prepare for when LIBOR ceases to be published by the end of 2021—a reality still on track despite the far-reaching disruptions caused by the Covid-19 pandemic.
With hundreds of trillions of dollars’ worth of Libor-based contracts to be referenced to a wide range of new risk-free rates (RFRs), the transition will require the full attention of all organizations to avoid disruptions with the help of the right data and tools.
Access the full report to find out:
- LIBOR transition and IBOR reform - Why its important to act now
- Reference data, benchmarks and IBOR - Key changes likely to emerge following LIBOR’s cessation in 2021, the primary challenges to a smooth transition and the key reasons for the switch
- Trading and IBOR - How firms can get ahead of market movements leading up to and during the LIBOR transition, including key action points for firms to consider to tackle the challenges, negate the risks and stay on track with the transition timeline
A good way of understanding the differences between term Sonia and GBP Libor is to compare the historic mid prices for Sonia OIS to GBP Libor for the same tenor. It’s really important to start getting familiar with the differences now