LIBOR Sunset Update – What to Do Now
By the end of 2021, banks will no longer be required to publish rates that are used to calculate the London Interbank Offered Rate (LIBOR). LIBOR serves as a reference rate for derivative transactions, as well as bond investments, bank loans and variable-rate mortgages. Market participants need a replacement rate that is supported by a liquid market and behaves in a predictable manner. This article provides an update on reference rate reform activities and guidance on what companies should do now.