Prepare Now and Ensure a Smooth LIBOR Transition

LIBOR Team

March 2022 is another month of fast-paced developments. Since 2018, Monticello's dedicated LIBOR team has been working with leading financial institutions on strategy, implementation, and everything in between.

Connect with us on your LIBOR initiative at: mcginfo@bip-group.com | 646.661.4992

Monticello Insights

Insights

Oct 21, 2020

Getting to Yes: Managing the Renegotiation of LIBOR-based Agreements

Oct 21, 2020

Oct 15, 2020

LIBOR Testing: What to Consider as We Near the Transition Deadline

Oct 15, 2020

Sep 10, 2020

Best Practices for LIBOR Transition Readiness

Sep 10, 2020

Apr 30, 2020

Transforming the Financial Contract Review Process through Artificial Intelligence

Apr 30, 2020

Apr 9, 2020

Executing IBOR Transition Programs for Global Financial Institutions

Apr 9, 2020

Apr 1, 2020

LIBOR Transition: Consider Your Customers

Apr 1, 2020

The Latest News

January 4, 2022 | Moodysanalytics: FCA Informs About Changes to LIBOR Settings from End-2021
December 14, 2021 | FCA: Changes to LIBOR as of end-2021
December 13, 2021 | Reuters: Libor limbers up for "Y2K" walk into $265 trillion sunset
November 30, 2021 | Financial Times: Why US companies need to stop using Libor right now
October 22, 2021 | Bloomberg: Morgan Stanley’s Robot Libor Lawyers Saved 50,000 Hours of Work
October 21, 2021 | Yahoo Finance: Sudden Drop in Libor’s Heir Presumptive Has Wall Street Talking
October 20, 2021 | Bloomberg: The Transition From LIBOR to SOFR and its Implications for Taxpayers
October 19, 2021 | Bloomberg: BOJ to Quiz Banks on Tough Legacy Libor as Expiry
October 15, 2021 | Financial Times: Libor deadline prompts surge in CLO
October 15, 2021 | Market Watch: Wall Street isn’t quitting troubled LIBOR yet, even as new SOFR-linked debt heads for a record ahead of deadline
October 5, 2021 | Wall Street Journal: U.S. Companies Pick Up Adoption of Libor Alternative SOFR
September 30, 2021 | Yahoo Finance: CLO's Near-Record Run Risks Faltering on Libor Transition
September 29, 2021 | Bloomberg: Addressing the Challenges of the IBOR Transition Under the Arm’s-Length Principle
September 28, 2021 | Bloomberg: Libor Deadline Extension Would Be ‘Huge Relief’ for Markets
September 28, 2021 | American Banker: Long way to go on Libor transition as key deadline nears
September 27, 2021 | Bloomberg: Derivatives Set for $15 Trillion Switch in Libor Test Run
September 16, 2021 | Reuters: Swiss watchdog FINMA: banks' syndicated loans falling behind LIBOR transition
September 15, 2021 | Yahoo Finance: Lending in Libor alternatives 'not where it should be' - NY Fed general counsel
September 13, 2021 | Financial Times: Libor replacement reaches Wall Street’s leveraged loan market
September 12, 2021 | Wall Street Journal: Libor Transition Stokes Sales of Risky Corporate Debt
September 10, 2021 | Wall Street Journal: Libor Alternative Is Winning Over Derivatives Traders
August 19, 2021 | Bloomberg Law: CLO Deals Tied to SOFR Set to Begin in Fourth Quarter, BofA Says
August 16, 2021 | Bloomberg: Fed Tells Judge Scrapping Libor Too Soon Would Spur Market Chaos
August 12, 2021 | Bloomberg: Libor Shift Quickens in Singapore as Contracts Jump Fourfold
August 5, 2021 | Bloomberg: Yen Libor Death Knell Sounds as Traders Close In on Replacement
July 26, 2021 | Bloomberg: Libor’s Final Days Begin With Push to Shake Up Swaps Market
July 19, 2021 | Risk.net: Libor is ending, and corporates need to know their options
July 14, 2021 | Financial Times: UK regulators are wading into the US's Libor transition
July 8, 2021 | Bloomberg: "Nonchalant" CLO Market Faces Hedging Risks in Libor Transition
July 5, 2021 | Reuters: Ask us first before swapping Libor with "risk-laden" rate, says UK watchdog
June 30, 2021 | Risk.net: Time to end debate on SOFR alternatives, participants warn
June 25, 2021 | Bloomberg: Libor Fears Persist for Loan Market With Six Months to Deadline
June 24, 2021 | Reuters: UK watchdog proposes temporary "synthetic" yen and sterling Libor
June 21, 2021 | Risk.net: SOFR alternatives remain on track despite regulatory warnings
June 14, 2021 | Financial Times: Corporates know transition from Libor is painful but necessary
June 11, 2021 | WSJ: US Financial Regulators Push Banks to Transition Away From Libor
June 8, 2021 | Reuters: BOJ's Amamiya urges Japanese banks to speed up Libor transition plans
May 19, 2021 | American Banker: Say goodbye to Libor, or risk the ire of your regulator
May 11, 2021 | Reuters: NY Fed's Williams much work needed in transition from Libor
April 7, 2021 | ISDA: Adoption of RFRs: Major Developments in 2021
April 6, 2021 | Bloomberg: NY Governor Signs Libor Fix Into Law to Avert Transition Chaos
March 29, 2021 | New York Fed: ARRC Publishes Approach to Using SOFR in New Issuances of a Variety of Securitized Products
March 24, 2021 | New York Fed: ARRC Publishes White Paper on Suggested Fallback Formula for the USD LIBOR ICE Swap Rate
March 23, 2021 | Risk.net: Fed Group: SOFR term rate unlikely in 2021
March 23, 2021 | New York Fed: ARRC Provides Update on Forward-Looking SOFR Term Rate
March 22, 2021 | American Banker: SOFR is the interest rate solution, not another problem
March 22, 2021 | New York Fed: ARRC Publishes Progress Report on Transition from USD LIBOR
March 5, 2021 | ISDA: LIBOR Cessation and the Impact on Fallbacks
March 5, 2021 | ISDA: ISDA Guidance: UK FCA Announcement on the LIBOR Benchmarks
March 3, 2021 | FCA: Announcements on the end of LIBOR
March 2, 2021 | Bloomberg: Fed Dials Up Pressure on Wall Street to Ditch Discredited Libor
February 23, 2021 | Risk.net: SOFR adoption stalls after US Libor delay
February 17, 2021 | JD Supra: OCC Publishes LIBOR-Transition "Self-Assessment Tool"
February 10, 2021 | ISDA: ISDA-Clarus RFR Adoption Indicator: January 2021
February 8, 2021 | CMi2i: LIBOR Update: IBA Announcement Expected
February 8, 2021 | Risk.net: Mutual funds slow to adopt SOFR
February 5, 2021 | Risk.net: SOFR swaps traded volume hit new high in January
February 1, 2021 | CMi2i: LIBOR transition: How should firms manage their legacy portfolio?
January 29, 2021 | New York Fed: ARRC Releases Conventions for SOFR-Based Intercompany Loans to Support Non-financial Corporations Through the LIBOR Transition
January 28, 2021 | Bloomberg: Libor's Endgame in the US Requires Urgent Preparation
January 27, 2021 | Risk.net: FCA sees "no case for delay" on Libor cessation ruling
January 25, 2021 | ISDA: New IBOR Fallbacks Take Effect for Derivatives
January 20, 2021 | Bloomberg: Libor Overhaul gets Boost in Cuomo Bid to Avert Transition Chaos
January 14, 2021 | ISDA: Countdown to New Fallbacks
January 12, 2021 | DLA Piper: Extension of USD LIBOR - ICE Benchmark Administration Consultation
January 11, 2021 | Reuters: End-game for Libor is now clear, say UK financial regulators
January 11, 2021 | Risk.net: IBA,Refinitiv go live with regulated term Sonia rates
January 4, 2021 | Risk.net: Approching the endgame - What's left for completing Libor transition?
December 22, 2020 | Asset Securitization Report: 2021 Outlook: What lies ahead for Libor transition
December 4, 2020 | Bloomberg: End of Libor Jolts Multitrillion-Dollar Derivative Market Again
November 30, 2020 | ISDA: ISDA Statement on IBA, UK FCA and Federal Reserve Board Announcements on US Dollar LIBOR Consultation
November 30, 2020 | New York Fed: Federal Reserve Board welcomes and supports release of proposal and supervisory statements that would enable clear end date for U.S. Dollar (USD) LIBOR and would promote the safety and soundness of the financial system
November 24, 2020 | Risk.net: US banks cede to SOFR lending as credit hopes fade
November 22, 2020 | ISDA: Transition to RFRs Review: Third Quarter of 2020 and Year-to-September 30, 2020
November 20, 2020 | FT: Banks turn to AI as regulators press for Libor exit
November 10, 2020 | MLex: US banks to get Fed guidance soon on approaches to existing Libor contracts that mature after benchmark is halted
October 29, 2020 | Bloomberg: Libor-Related Accounting Breaks Set to Cover More Derivatives
October 27, 2020 | Bloomberg: Surge in SOFR Derivatives Bodes Well for Shift
October 26, 2020 | Bloomberg: Libor Transition Seen on Track Even as Virus Adds Complications
October 23, 2020 | ISDA: ISDA Launches IBOR Fallbacks Supplement and Protocol
October 22, 2020 | ISDA: Transition to RFRs Review: Third Quarter of 2020 and Year-to-September 30, 2020
October 16, 2020 | FSB: FSB publishes global transition roadmap for LIBOR
October 16, 2020 | Benzinga: Banks Prepare For "Big Bang" Switch From LIBOR
October 13, 2020 | Bloomberg: Wall Street Eyes Fix for $345 Billion Libor Dilemna in Debt Swap
October 13, 2020 | Reuters: Unilever, JP Morgan entered into $500 million corporate swap linked to new SOFR benchmark
October 9, 2020 | ISDA: ISDA Board Statement on the IBOR Fallbacks Supplement and Protocol
October 8, 2020 | Bloomberg: Libor Law is Adrift in Albany and Wall Street is Getting Nervous
October 2, 2020 | DoJ: Justice Department Issues Favorable Business Review Letter to ISDA For Proposed Amendments to Address Interest Rate Benchmarks
September 30, 2020 | Bloomberg: Libor's Exit Sparks Legal Fears for Global Banks, Moody's Says
September 29, 2020 | Reuters: UK regulators switch to SONIA-based swaps from October 27
September 23, 2020 | ISDA: Updating the Fallbacks Timetable
September 18, 2020 | Reuters: Banks in Britain ready for Libor milestone next month: BoE
September 16, 2020 | FINRA: FINRA Shares Practices Firms Implemented to Prepare for the LIBOR Phase-out
September 4, 2020 | Asia Times Financial: Banks prepare for end of the world's most important number
August 31, 2020 | CFTC: CFTC Provides Additional Relief to Market Participants Transitioning from LIBOR
August 27, 2020 | New York Fed: ARRC Releases Updated Reccomended Hardwired Fallback Language for Bilateral Business Loans
August 26, 2020 | Risk.net: Asia risks falling behind on Libor transition
August 25, 2020 | IFLR: PRIMER: Ameribor and its role in the Libor transition
August 18, 2020 | JD Supra: Transition From LIBOR Appears to Remain on Track (At Least for Now)
August 17, 2020 | Bloomberg: Singapore Leads Libor Exit With "Groundbreaking" Debt Sale
August 13, 2020 | FXStreet: Get ready for SOFR: Low rates for foreseeable future
August 7, 2020 | New York Fed: ARRC Releases SOFR Transition Toolkit
August 3, 2020 | FCA: LIBOR transition - the critical tasks ahead of us in the second half of 2020
August 3, 2020 | JD Supra: OCIE examining LIBOR transition preparedness - How investment companies should prepare now
July 28, 2020 | ISDA: ISDA Launches Risk-free Rate Indicator
July 24, 2020 | New York Fed: ARRC SOFR Summer Series Update
July 22, 2020 | New York Fed: ARRC Releases Conventions Related to Using SOFR in Arrears for Syndicated Loans
July 21, 2020 | ISDA: Bloomberg Begins Publishing Calculations Related to IBOR Fallbacks
July 14, 2020 | Bloomberg: Libor Deadline Poses "Huge Risks" if Firms Don't Tweak Contracts
July 8, 2020 | New York Fed: Internal Systems and Processes: Transition Aid for SOFR Adoption
July 7, 2020 | New York Fed: ARRC Announces the SOFR Summer Series
July 3, 2020 | FEDS Notes: How Correlated is LIBOR with Bank Funding Costs?
July 3, 2020 | Reuters: Pandemic must not stop move to scrap Libor, say regulators
July 3, 2020 | FFIEC: Financial Regulators Issue Statement on Managing the LIBOR Transition
July 3, 2020 | FSB: FSB statement on the impact of COVID-19 on global benchmark reform
July 1, 2020 | ABA Banking Journal: ARRC Announces Spread Adjustment Methodologies, Issues New Fallback Language
June 30, 2020 | New York Fed: ARRC Announces Further Details Regarding Its Recommendation of Spread Adjustments for Cash Products
June 26, 2020 | ISDA: Tackling Tough Legacy
June 25, 2020 | Federal Reserve: Federal Reserve Board releases results of stress tests for 2020 and additional sensitivity analyses conducted in light of the coronavirus event
June 25, 2020 | Federal Reserve: Agencies finalize amendments to swap margin rule
June 23, 2020 | Central Banking: FCA to gain new powers to tackle "tough legacy" issues in Libor transition
June 10, 2020 | Reuters: Big banks say pandemic will not be stay of execution for Libor, study says
June 2, 2020 | Bank of England: Paper on the identification of Tough Legacy issues
May 27, 2020 | New York Fed: ARRC Announces Best Practices for Completing Transition From LIBOR
May 11, 2020 | American Banker: The case for industrywide use of SOFR
May 7, 2020 | Reuters: Pandemic market volatility reinforces need to scrap Libor: BOE
May 7, 2020 | New York Fed: ARRC Recommended Best Practices for Vendors on Completing the Transition from LIBOR
May 6, 2020 | Bloomberg: Fed Embraces Libor Again and Risks Undermining Push to Kill It
May 6, 2020 | New York Fed: ARRC Issues Supplemental Consultantion on Spread Adjustment Methodology
May 4, 2020 | Wall Street Journal: Fed Won't Use Stimulus Aid to Push Libor Replacement
Apr 29, 2020 | Reuters: Britain extends deadline for Libor loan switch due to pandemic
Apr 24, 2020 | FitchRatings: Coronavirus Further Impedes Adoption of Global SOFR Derivatives
Apr 17, 2020 | LCH: Transition to €STR Discounting: Updated Timing. New live date for €STR discounting and PAI/PAA rates will now be Monday July, 27 2020.
Apr 17, 2020 | New York Fed: ARRC Announces Its Key Objectives for 2020
Apr 14, 2020 | Financial Stability Board: Addressing financial stability risks of COVID-19
Mar 25, 2020 | Financial Conduct Authority: Impact of the coronavirus on firms' LIBOR transition plans

LIBOR Timeline Update

While LIBOR is largely expected to cease once official support stops at the end of 2021, the global pandemic has started to shift a number of important milestone dates. Monticello’s team of LIBOR experts is tracking the latest requirements as they unfold. Follow us to stay up to date on the latest timeline news.

LIBOR Timeline

In 2020, the banking and financial services industry observed the final cessation dates shift for key LIBOR benchmark rates such as USD LIBOR. Below is a snapshot of key LIBOR and IBOR transition plans in Q1 2021.

Apr 29, 2020 | Reuters: Britain extends deadline for Libor loan switch due to pandemic.
Apr 17, 2020 | LCH: Transition to €STR Discounting: Updated Timing. New live date for €STR discounting and PAI/PAA rates will now be Monday July, 27 2020.

Click here to download Timeline: “(L)IBOR Transition Timelines as of January 25, 2021”

Client Resources

List of Global Working Groups Supporting the LIBOR Transition

Country	LIBOR Rate	New Risk-Free Rate	Transition Committee
United States	USD LIBOR	SOFR	Alternative Reference Rates Committee
United Kingdom	GBP LIBOR	SONIA	Sterling Working Group on Risk-Free Rates
Japan	TIBOR, JPY LIBOR and Euroyen TIBOR	TONAR	Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks
Europe	EURIBOR and EUR LIBOR	ESTR	European Money Markets Institute (EMMI) and Euro RFR Working Group
Canada	CDOR	CORRA	Canadian Alternative Reference Rate Working Group (CARR)
Switzerland	CHF LIBOR	SARON	The National Working Group on Swiss Franc Reference Rates
Australia	BBSW	RBA Cash Rate (AONIA)	Australian Financial Markets Association
Hong Kong	HIBOR	HONIA	Treasury Markets Association's Market Practices Committee

Contract Remediation Working Groups and Resources

International Swaps and Derivatives Association (ISDA) Benchmark Reform and Transition from LIBOR
International Swaps and Derivatives Association (ISDA) Benchmark Fallbacks
International Swaps and Derivatives Association (ISDA) Interest Rate Benchmarks Review: First Quarter of 2020

Market Data Provider Resources and Updates

Bloomberg: Bloomberg published a rulebook setting out the final methodologies for the IBOR fallbacks that ISDA expects to implement for certain key IBORs via a Supplement to the 2006 ISDA Definitions and related Protocol.