Ready for LIBOR’s 2021 Sunset?
Ready or not, 2021 will mark the end of the London Interbank Offer Rate (“LIBOR”). Those financial institutions who have long pegged their interest rates based on LIBOR for the more than $240 trillion in mortgages, SWAPS, credit products, and other loans and derivatives contracts are considering their next steps
The transition from LIBOR to alternative rate benchmarks that have been created will generate risks for financial institutions. Fall-back clauses within contracts were never intended to support an entire benchmark cessation. Switching to a new underlying interest rate benchmark is tough enough and can produce significant gains or losses for banks depending upon individual contract terms. Further, just locating and identifying all of the individually structured contracts pegged in some way to LIBOR can be cumbersome, time consuming and even overwhelming, and can magnify banks’ risk exposure.
Do you have a strategic plan to identify, collate, analyze and comprehensively, but individually, transition all of your LIBOR-linked financial products and contracts to your chosen alternative rate?
Synechron can help! We have developed an Accelerator specifically designed to ease your LIBOR transition. Synechron’s proprietary Data Science Accelerator for LIBOR Impact Analysis was built to:
To learn more about how Synechron’s technology can significantly help with your LIBOR transition, may we suggest you read:
Synechron’s dedicated team of business consulting, technology, IT architecture, data science, AI/machine learning, cloud migration, regulatory compliance and user experience experts, have helped financial services firms implement digital-first accelerators and integrate the newest tools to address a wide range of challenges, alleviate their technology operational pain points and greatly accelerate digital competencies.