New Research on the LIBOR Transition

The race is on to replace the London Interbank Offered Rate (LIBOR), as just over two years remain before the deadline to institute a new reference rate for $200 trillion in dollar-denominated loans, bonds, and derivatives arrives.

In order to shed light on the steps being taken by the financial industry to prepare for the shift away from LIBOR, SRS Acquiom commissioned Debtwire to survey U.S. financial executives to learn about their institutions’ preparations and the steps they have taken so far.  Download the full report, A New Standard: How Financial Institutions are Racing to Prepare for the LIBOR Transition.

Key Findings Include:

  • 64% of respondents plan a full transition away from LIBOR by the end of 2020, with a significant percentage planning this for the first half of the year.
  • Over a third (38%) of institutions have not begun the process of organizing a steering committee for the transition.
  • More than six in ten institutions favor the “amendment” approach in existing contracts, wherein the agent selects the successor rate subject to lender consent.
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