Global In House Training: The World of LIBOR Transition

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Global In House Training: The World of Libor Transition

The capital markets industry started to prepare for an alternative rate to LIBOR more than three years ago, and now the buy-side must ready itself for several critical milestones ahead.  LIBOR, the most widely used interest rate benchmark in the world, is expected to phase out by the end of 2021.  More than $350 trillion in notional of cash and derivative securities currently track LIBOR globally, approximately $200 trillion of which is linked to USD LIBOR.  The industry started preparations for the transition to an alternative rate more than three years ago and a lot of progress has been made.  But the next two years involve several critical milestones and it’s time for buy-side firms to prepare for the transition. In his remarks at the 2019 U.S. Treasury Market Conference, John Williams, President and Chief Executive Officer of the FRBNY, delivered a wakeup call when he said, “The clock is ticking, LIBOR’s days are numbered, and we all need to play our part in preparing the industry for January 1, 2022.”

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