LIBOR cessation is almost here!
For more than 35 years, LIBOR has been used as the benchmark reference for determining interest rates for debt instruments, such as structured securities, corporate debt (including money markets), and municipal bonds. Come 1 July 2023 when the US market moves from LIBOR benchmark rates to Secured Overnight Financing Rate Data (SOFR), trillions of dollars of debt will be impacted.
DTCC’s Anne Marie Bria (pictured), Executive Director, Asset Services, shares her views on getting ready for this massive and complex undertaking: “The cessation of LIBOR on June 30th is the first wholesale discontinuation of a benchmark index. With just a few days left before the deadline, firms must remain focused on updating the benchmark rate information on impacted transactions and communicating the fall back rate indexes to appropriate parties. DTCC has worked closely with the ARRC and other industry organizations to deliver a centralized process to capture and disseminate standardized benchmark replacement via its LENS service. LENS holds thousands of submissions, and many still require updating. Firms should update this information as soon as possible.”