LIBOR Transition Services

Transition With Confidence

Business leaders must move their organizations forward and adapt while mitigating risk amidst this complex and evolving transition. A significant amount of effort is likely to be required as LIBOR-based products may exist in multiple customer classes, across many complex systems and require amendments to many contracts and other legal documents.

CrossCountry’s specialized LIBOR transition team helps clients meet this challenge by guiding organizations through a structured process to assess the impact, plan for the transition and manage the actual implementation across the wide range of organizational stakeholders that will be impacted.

The World's Most Important Number

The London Interbank Offered Rate (LIBOR) is a series of benchmark interest rates and has been called the “world’s most important number” as more than $240 trillion in products reference LIBOR.

Global regulators have expressed dissatisfaction with LIBOR for two reasons: first, the size and number of transactions that underpin LIBOR have significantly diminished and second, the rate is susceptible to manipulation.

In light of this, regulators encouraged the formation of various central bank sponsored working groups around the world to identify and create alternative reference rates to replace LIBOR. However, these new rates are not economically equivalent to LIBOR and some uncertainty exists around how existing products will change and also what new products will emerge. There is the possibility of significant customer and economic impact and uncertainty over how this will develop.

Our Services

We work with clients to perform detailed assessments of their LIBOR exposure and related processes, people and technology to determine and implement the optimal future state business and technological requirements.

Sales & Trading

Impacted business lines; LIBOR position / product inventory; New curve construction

Finance & Operations

Settlement / cash flow; Confirmations; Collateralization management

Legal

Identification/renegotiation of contracts; Assessment of fall-back provisions

Accounting, Tax &
Internal Audit

Hedge accounting; Modification accounting and forecast accounting; Differences in tax treatment

IT &
Infrastructure

Enhance and adapt technology to incorporate SOFR curve; Impact planning; Transform support systems

Valuations &
Market Risk

Valuation impacts; Verification of Net Present Value (NPV) neutrality in position transition; Price testing and assurance

Compliance

Regulatory tracking / impact / relationship management; Different regulatory requirements across jurisdictions

Treasury

Transfer pricing impact; Changes to issuance programs / hedges; Asset/Liability Management (ALM) internal funding implications

Featured Insights & News

Meet Our LIBOR Transition Leadership Team

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BRUCE KLEIN

Partner Lead

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ALAN FAGAN

Director

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KEITH ST. GERMAIN

Director

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