IBOR Transition with Deloitte

The upcoming phase-out of the Interbank Lending Rate (IBOR) means big changes to financial services – but few firms are prepared. For more than 40 years, Interbank Offered Rates (IBORs), especially the London Interbank Offered Rate (LIBOR), has been a fact of daily life for the global financial services industry. They’ve set the benchmark rate for lending on an unsecured basis, underpinning the worldwide trade in financial products – from bonds and loans to derivatives and mortgage-backed securities.

A series of scandals has sealed the fate of the once-dominant IBOR benchmark. In 2012, a group of banks were accused of manipulating their IBOR submissions during the financial crisis. In the wake of those scandals, the UK Financial Conduct Authority (FCA) shifted supervision of the index to the Intercontinental Exchange Benchmark Administration (IBA). Despite steps taken by the IBA to strengthen the benchmark, the ongoing slow-down in unsecured debt market activity has diluted IBOR’s relevance – three-month US dollar LIBOR, the most heavily referenced IBOR benchmark, is supported by less than $1 billion in transactions per day. Both the UK and US plan to phase out IBOR and move to a new benchmark.

Join this round table to learn more about the IBOR transition.