New analysis from Factor estimates that 2 in 5 of the 100 million contracts using the London Interbank Offered Rate (LIBOR) have no language dealing with cessation of the benchmark, and will require remediation prior to it being discontinued at the end of 2021
With this in mind, Factor today announced it has entered into a non-exclusive partnership with the global law firm Allen & Overy (A&O) to help the financial services industry manage the complexities of transitioning from LIBOR to new replacement rates. A&O has been at the forefront of advising financial institutions and other market participants on how to address this sizeable and time-sensitive issue, including the creation of IBORMatrix, a scaled solution to assist with the transition.
"With less than two years until the end of LIBOR, financial services firms are now actively gearing up large-scale initiatives to amend their contracts to move to new rates," said Chris DeConti, Head of Strategy at Factor. "The LIBOR transition impacts so many contracts and lines of business that the challenge is insurmountable with legacy models of working. The innovative partnership between Factor and A&O allows financial institutions to adapt to the transition more effectively, with minimal disruption and significantly reduced risk."
