News & Press: Member News

APRÈS LIBOR: BLACK SWAN OR Y2K S&W CLIENT ADVISORY

Tuesday, July 24, 2018   (0 Comments)
Posted by: Linda Bernetich
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ACMA Fellow Joe Forte has provided his recent article discussing the Cessation of LIBOR and the Transition to a new replacement benchmark in the $373 Trillion LIBOR-based cash products and derivatives markets.

The article outlines the various risks and challenges to the financial system in the Transition away from LIBOR;  the significant impact the Transition may have on businesses, investments and profitability of lenders, borrowers and investors; the potential value shift of the Transition; and what lenders, borrowers and investors can and should do to prepare for, and mitigate against, the inevitable consequences of the end of LIBOR.
 
Check out this important article (log-in to website required).

Also, related to the article is the latest post on the ACMA Community Blog (log-in required) - also provided by Joe Forte - regarding the guiding principles issued by the Alternative Reference Rates Committee (ARRC) for more robust LIBOR fallback language for new financial contracts for cash products.