The financial services industry is faced with a daunting task as the single largest floating rate benchmark in history is set to be phased out in less than two years. There are over $350 trillion in notional contracts tied to IBORs in various jurisdictions around the world. In the U.S. alone that number stands at $200 trillion.
The cessation of LIBOR has become such a significant issue that many are overwhelmed and do not have the expertise or resources in-house to identify the issues and address them in a timely manner. Stakeholders are concerned about the effects this will have on the bottom line in addition to the regulatory, tax, accounting and legal implications.
Understanding how to navigate this transition effectively is crucially important to firms that have significant exposure to LIBOR. Those firms with a better understanding of the issues are much more likely to develop a winning strategy to address the cessation of LIBOR.
There is no consulting / advisory firm that does this better than Market Alpha. Contact us today to find out how we’re uniquely positioned to help.