USD IBOR transition is coming

The move away from interbank offered rates (IBORs) is one of the most significant and far-reaching changes in banking and financial services for a generation. Thousands of work-hours have already been spent in preparation for the new post-LIBOR paradigm.

While the deadline for the transition of non-USD trades passed last year, the major hurdle remains: safely and efficiently transitioning the vast number of USD-denominated trades away from LIBOR and to the new regime of ‘risk-free rates’ (RFRs).

The IBOR transition has been a trial by fire for many organisations, requiring a high degree of cross-functional collaboration not only to understand the implications of the change but to implement it. The tendrils of IBOR are embedded deep within the industry, and the transition affects every part of the impacted businesses, from board level to IT.

This paper explores the realities of the IBOR transition from the perspectives of a range of market participants. It asks what has worked, what remains to be done, and how the lessons learned during the transition can help the industry manage complex change programmes better.