Dec 9, 2020
The administrator of the London Interbank Offered Rate has made what was expected official: the widely used benchmark will cease publication, with certain Libor tenors ceasing as soon as the end of 2021. With the “Libor endgame” in its final stages, along with a welter of other Libor transition news in recent weeks, ABA VP and ARRC member Hu Benton joins the ABA Banking Journal Podcast to discuss:
- ICE Libor’s public consultation to cease publication of Libor tenors
- Supervisory expectations for how banks use Libor in the interim period before the rate ceases
- What regulators have said about banks’ use of alternative rates to the Secured Overnight Financing Rate, such as Ameribor or commercial paper
- The adoption of the ISDA protocol on fallback rates for derivatives
- The importance of educating clients about the Libor transition and what it means for them
- Resources from the Alternative Reference Rates Committee on SOFR adoption, contract fallbacks and other challenges
Additional resources:
- Resources from the ARRC (contact Hu Benton at hbenton@aba.com to join a working group)
- ABA resources on reference rate transition