Recent announcements by regulators in the United States and United Kingdom provided strongly worded reminders to banks and other entities they supervise that the London interbank offered rate for the U.S. dollar (USD LIBOR) will soon be discontinued or declared unrepresentative. One-week and two-month USD LIBOR—as well as all non-USD LIBOR tenors—will cease publication immediately after December 31, 2021. Three-month, six-month, and one-year USD LIBOR will cease publication after June 30, 2023.
In anticipation of the benchmark's cessation, regulators warned entities to avoid taking on new LIBOR exposure except in very limited circumstances.1 These announcements make it abundantly clear that entities and other market participants that have engaged in (or continue to engage in) loans, floating-rate notes, securitizations, supplier contracts, and/or other financial instruments that reference USD LIBOR should already be well on their way away from the benchmark. Actions recently taken by other regulators, regulator-sponsored groups such as the Alternative Reference Rates Committee (ARRC), and trade associations emphasize this imperative.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
