What Does Replacing LIBOR Mean for Financial Services Firms?
The London Interbank Offered Rate (LIBOR), is a series of benchmark interest rates and has been called the “world’s most important number.” It is a globally recognized base rate for pricing loans, debt, and derivatives. As a key part of the financial services infrastructure, more than $240 trillion in products reference LIBOR.
As its underlying transactions have diminished, regulators have announced a target date to replace LIBOR and begun the process of identifying and creating alternative rates. However, these rates are structurally different from LIBOR and it is unclear how existing products referencing it will change, and what new products will emerge. There is the possibility of significant customer and economic impact and uncertainty over how this will develop.
Commercial lending must transition from LIBOR this year but the forward direction is unclear. Our perspectives can help with understanding the landscape and guiding transition strategy.
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Read moreWebinar LIBOR Transition: Lenders vs. Regulators Commercial lending must transition away from LIBOR this year but the forward direction is unclear. -
Read moreWebinar Commercial Lending After LIBOR How will the market evolve - a survey of banks and borrowers -
Read moreInsights The Fed's LIBOR Game Changer The Federal Reserve’s plan to simplify legacy LIBOR loans may change the shape of the transition -
Read moreEvents LIBOR Transition: Looking Forward As the LIBOR transition accelerates, Oliver Wyman experts and guest speakers will discuss the development of a Credit-Sensitive Benchmark, an update on progress in Europe, and Managing LIBOR Fallback Liability. -
Read moreWebinar Resolving Transition’s Key Issues Join this webinar with Oliver Wyman experts for an overview of key open issues and suggested methods of navigation. -
Read moreWebinar Recent Developments in LIBOR Transition As the LIBOR transition accelerates, join this webinar with Oliver Wyman experts to understand key new developments and information on best practice. -
Read moreWebinar LIBOR Transition: Lending with Alternate and Alternate-Alternate Rates Please join this important LIBOR webinar to learn about lending in the post-LIBOR world, including SOFR and other LIBOR alternatives with guest participation from the American Financial Exchange and the ICE Benchmark Administration. -
Read moreWebinar LIBOR Transition: Views from the UK Financial Conduct Authority and Leading Firms Join this important LIBOR webinar to hear from the UK Financial Conduct Authority on the future of LIBOR; and from the LIBOR transition leaders at Goldman Sachs and Wells Fargo about where firms should be prioritizing. -
Read moreWebinar LIBOR Transition Update: Views From The ARRC April 14, 2020 Join a webinar hosted by Oliver Wyman to learn about latest developments in LIBOR transition -
Read moreInsights What If LIBOR Transition Is Postponed? A practical guide -
Read moreInsights Time To Switch Rates: Libor Transition Our new report on LIBOR transition outlines why the speed of change needs to accelerate ahead of 2021 -
Read moreInsights LIBOR Transition Roadmap For Investment Managers Our report on how investment managers can start to plan for replacing LIBOR -
Read moreInsights The Road To Liboration: What Does It Mean For Corporates? Corporate treasurers soon will be experiencing significant change – the departure of LIBOR as they know it. -
Read moreInsights The Risks Of The Libor Switch The London Interbank Offered Rate (Libor) is the reference interest rate for financial products worth more than a staggering $240tn. -
Read moreInsights A Tale Of Two Benchmarks: The Future Of Euro Interest Rates The Euro Interbank Offered Rate (Euribor) and the Euro Overnight Index Average (Eonia) are critically important interest rate benchmarks for the eurozone. -
Read moreInsights LIBOR Fallbacks In Focus: A Lesson In Unintended Consequences Our report discusses the implications of the existing fallback language for LIBOR transition, and highlights actions that should be taken to mitigate the economic and non-financial risks associated with the existing language. -
Read moreInsights Not SOFR Away: LIBOR Transition Begins Our report discusses the implications of the SOFR rate, and near-term “no regrets” actions that institutions should be taking to organize their transition away from LIBOR. -
Read moreInsights LIBOR Articles A curation of articles from currency working groups, regulatory authorities, and central banks. -
Read moreInsights The LIBOR Transition: Banks Face Risks And Opportunities -
Read moreInsights Transition From LIBOR -
Read moreInsights Changing the World's Most Important Number: LIBOR Transition Our latest report looks at the implications replacing LIBOR could have for financial firms, and outlines why it’s wise to start planning now.
While the discontinuation of LIBOR may seem far away, the magnitude of the transition and potential for financial impact means financial institutions must start mobilizing near term.Adam Schneider, Partner, Oliver Wyman
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To learn more about our work on the LIBOR transition, please contact LIBOR@oliverwyman.com.
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