Despite warnings from regulators to prepare, global financial institutions still face a lot of work and uncertainty around the demise of a key benchmark interest rate, according to a new assessment.
Only about 40 percent of 177 global financial institutions and corporate leaders participating in a recent poll said their organizations have a unified and consistent approach in place to transition away from use of the London Interbank Offered Rate in financial contracts. LIBOR is the key rate referenced in some $400 trillion in contracts, such as derivatives, bonds, mortgages, and other loan agreements, that is expected to sunset at the end of 2021 after discovery of manipulation.
