Libor
LIBOR vs SOFR: Big Changes Are Coming for US Treasurers
Transitioning away from the London Interbank Offered Rate (Libor) is , especially considering that many banks and corporates do not appear to be on the same page as regulators.
Why is the Most Important Number in the World Going Away?
AFP has joined the Alternative Reference Rates Committee (ARRC) and will provide updates from committee meetings.
prepare for the upcoming transition
Libor and Brexit: Two Looming Challenges for Treasury and Finance
“There will be a risk that Libor might not even be available post-2021. And that really forced the industry to start thinking about how and when they should transition away from Libor.”
Emerging Benchmark Interest Rates – Accounting and Valuation Observations On Libor Replacement
SONIA, SOFR Questions Complicate LIBOR Transition
an extraordinary impact on treasury processes, technology, and operations
2021
Which Products
Will the LIBOR Transition Impact?
Sink Or Swim: Libor’s Transition To A New Reference Rate Leaves Investors Less Than Buoyant
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Why the Libor Transition is a Marathon Not a Sprint
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Featured Content
So if LIBOR is so popular, then why is it going away?
Libor Transition: 3 Ways Treasurers Can Address the Challenge
Libor Transition: 3 Ways Treasurers Can Address the Challenge
Regulators are Pushing Banks to Speed Up LIBOR Transition
Libor Transition: Time to Switch to SOFR?
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And what's replacing it?
"The first thing you've got to do is get a handle on what type of facilities you have that may be potentially impacted by the discontinuation of Libor."
SEC Warns Corporates of Libor Transition Risks
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easier said than done
Certification
Why is the Most Important Number in the World Going Away?
Ideas & Inspiration
LIBOR Predictions:
Will This Critical Number Go Away?
Careers
Preparing for the
LIBOR Transition:
A Treasury Checklist
The transistion is coming.
Make sure you're ready.
Membership
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If LIBOR is so popular, then why is it going away?
Ming Min Lee, a principal with Oliver Wyman, has the answers.
Treasurers, Your LIBOR Feedback is Needed
for Fallbacks
The London Interbank Offered Rate — aka LIBOR — is the most widely-used benchmark for short-term interest rates in the world.
And what's replacing it? Ming Min Lee, a principal with Oliver Wyman, has the answers.
Preparing for the
LIBOR Transition:
A Treasury Checklist
“We get really nervous when we see people talking about specificity in fallback language in light of the uncertainties that exist.”
Libor Fallback Language:
What Treasurers
Need to Know
The Road to Liboration
LATEST Content
Given Libor’s ubiquity in the plumbing of financial systems, its departure will have
. Here’s how you can get started on mobilization.
LIBOR Transition: What Treasurers Need to Do First
Training
Publications & Data
Events
LIBOR LIBRARY
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The Association for Financial Professionals (AFP) is the professional society committed to advancing the success of finance executives globally. AFP established and administers the Certified Treasury Professional and Certified Corporate FP&A Professional credentials, which set standards of excellence in finance. Each year, AFP hosts the largest networking conference worldwide for over 6,500 corporate finance professionals.
Copyright © 2019 Association for Financial Professionals - All rights reserved.
Libor: Why 2022 is Coming Faster Than You Think
Libor Transition: What Are the Implications for Treasury?
"If a corporate is just getting involved in Libor... you've got to do a survey of the type of debt documents and derivative instruments that you have in place where Libor might be in play. So the first thing you've got to do is get a handle on what type of facilities you have that may be potentially impacted by the discontinuation of Libor."
Kimberly MacLeod, Partner with Hunton Andrews Kurth, discusses what corporate treasury professionals can do to away from Libor.
About AFP
Association for Financial Professionals
4520 East-West Highway, Suite 800
Bethesda, MD 20814, USA
Phone: 1.301.907.2862
Office Hours: 8:30 a.m - 5:00 p.m. ET Monday through Friday (closed on all U.S. federal holidays)
Libor Transition:
Key Steps to Prepare
Libor Transition: Replacements Begin Addressing Cash Products
Educate yourself about SOFR, and how it is performing relative to LIBOR. Determine what that means for your organization’s credit spreads, because
credit spreads are based on risk, and each corporate carries its own, unique risk. Compare yourself not only to businesses in the same industry, but also comparable benchmarks and credit spreads.
Key differences between
LIBOR and SOFR
libor
A Deep Dive
THE BASICS
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If you’re doing a refinancing or are entering into an amendment for an existing credit facility, discuss SOFR with your bank partners and see if you can get fallback language implemented into the agreement if your loans extend beyond 2021. Banks may be willing to address the issue and include language that states if LIBOR goes away, the borrower and the administrative agent will agree on a replacement index.
IBOR
LIBOR
Understand where LIBOR exists within your organization. Take note of all your borrowing and funding commitments that are dependent upon LIBOR. Consider payroll loans, supply chain financing, factoring, asset based lending, in-house banking, etc. Figure out what your spreads and maturities are, and what you’re going to need to refinance your contracts, and what the results of triggering existing fallback language will be.
take
inventory
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LIBOR'S FLAWS
Program
$36
trillion
Hotel & Travel
in daily three-month LIBOR trades
Exhibitors & Sponsors
in USD LIBOR-based contracts outstanding
get
involved
How will transitioning to SOFR affect you? Consider the procedures you’ll need to put in place to track SOFR on a daily basis. Contemplate whether or not you need to perform a periodic analysis to optimize your capital structure and, if so, the timespan between analyses.
Get feedback from your fellow AFP members and your bankers, and perhaps even reach out to the Alternative Reference Rate Committee (ARRC) directly to help you anticipate upcoming challenges. There may even be opportunities to work with the ARRC and help make this a more seamless transition.
5 actions to take now
SOFR
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LIBOR has been an endangered species for some time. In 2012 it was revealed that financial institutions were manipulating the rate for their own gain.
This led to fines, jail terms, and reputational damage to the financial sector.
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sofr
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$200
trillion
General
Information
$500
million
Speakers
LIBOR vs SOFR
LIBOR
in notional outstanding in the U.S. will not mature before LIBOR is set to end.
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the impact
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