This report is an updated version of our paper, Changing The World's Most Important Number. In this new version we provide the latest overview of LIBOR transition.
It has been a year since Andrew Bailey, Chief Executive of the UK Financial Conduct Authority (FCA), announced the FCA would not persuade or compel banks to submit the inputs used for the London Interbank Offered Rate (LIBOR) after 2021, and five months since our original paper on this topic, Changing the World’s Most Important Number, was published. Since then market participants have taken concrete foundational steps to transition from LIBOR to transaction-based alternative reference rates. However, this work needs to dramatically accelerate to meet the 2021 timeline.
The message from regulators is clear: the industry must work under the assumption that LIBOR will be unavailable after 2021. And for market participants that have not yet begun mobilizing… the time to begin is now.
What's Your LIBOR Spirit Animal?