Navigating the LIBOR Transition Path 2022 and Beyond

The London Interbank Offered Rate, most popularly known as LIBOR, is one of the most important interest reference rates in the world.  However, for several years, LIBOR has been hounded by many challenges and controversies. As a result, the U.K. Financial Conduct Authority (FCA) announced that LIBOR will permanently cease immediately after December 31, 2021 for all currencies except (i) most U.S. Dollar facilities, (ii) the British Pound and (iii) the Japanese Yen.  The FCA announced that (i) USD LIBOR is to terminate on June 30, 2023, (ii) Yen LIBOR is expected to terminate in 2022 and (iii) Pound LIBOR’s end date has not yet been determined.  As part of the transition, benchmarks are transitioning to alternative risk-free rates (RFRs), or alternative commercial proprietary benchmarks which regulators have warned may have similar flaws to LIBOR.
 
The move away from LIBOR has been creating a drastic impact on all financial and non-financial institutions and a myriad of financial instruments on derivative and cash markets. Although banks have been making progress in their transition with respect to some financial products, all must still be wary of potential challenges and drawbacks in the ongoing transition process and the post-LIBOR era.
 
Key topics discussed include:

• LIBOR Transition: Significant Market Trends
• Key Transition Milestones
• Transition Documentation Concerns
• Risk Management at Play
• The Post-LIBOR World: What’s Next?

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