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LIBOR

“The discontinuation of LIBOR is not a possibility. It is a certainty. We must anticipate it, we must accommodate it, and we must adapt to it."

– CFTC Chairman J. Christopher Giancarlo

Where is the industry?

How Treliant can help.

ARRC is advancing. Its plan has broadened far beyond the banks. Facilitate initial evaluation and scoping of need and risks.
Industry groups are engaged. ISDA, LSTA, SFIG, CME, LCH, and SIFMA are all assisting their constituencies.  Provide comprehensive LIBOR Transition Services – planning, executing, and staffing.
SOFR is working. New issues reference it, futures are trading, and swaps are clearing. Conduct inventory of products and risks – interview, interrogate systems, and investigate bespoke situations.
Unresolved issues are increasing. The most significant is the fallback index for legacy securitization notes. Risk analysis and quantification – scenario based analytic framework.
Inevitability is increasing. All market participants see 2021 as the real end date. Documentation reviews for fallback language – comprehensive or AI driven automation.
Beware of value transfer. All markets are beginning to see winners and losers. Anticipatory actions ahead of basis management issues as market standards migrate to a new index.
Quantify risk and prioritize work. 2019 is about measuring, planning, and executing transition. Develop a communication plan for the board, regulators, customers, and staff.

Video Spotlight

Graham Broyd, Principal, discusses the transition from LIBOR to the new benchmark rate, SOFR.

Libor Specialists

Graham A. D. Broyd
Principal
Waldo M. Abbot
Senior Advisory Board Member
David E. Wagner
Senior Advisor