International regulators have been calling for alternative risk-free rates to replace interbank offered rates (Ibors). Such a transition is particularly urgent in the jurisdictions where the relevant Ibor will likely be discontinued.

The reform of interest rates benchmarks also affects structured products with more than 2,000 live products linked to the London interbank offered rate (Libor) – which is set to be discontinued at the end of 2021 – the Euro interbank offered rate (Euribor), or the constant maturity swap (CMS), a reference index which is supported by Libor or Euribor. It would be increasingly uncomfortable to enter new businesses that reference Libor and mature after 2021, according to Edward Schooli

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