Highlights:

• Why firms need to end their reliance on LIBOR by end-2021.
• Why overnight risk-free rates (“RFRs“) are the right foundation for interest rate markets.
• The progress made on transition to these overnight risk-free rates and the work that remains to be done.

“I hope it is already clear that the discontinuation of LIBOR should not be considered a remote probability ‘black swan’ event. Firms should treat it is as something that will happen and which they must be prepared for. Ensuring that the transition from LIBOR to alternative interest rate benchmarks is orderly will contribute to financial stability. Misplaced confidence in LIBOR’s survival will do the opposite, by discouraging transition.

There is some good news to report on the important steps taken towards transition. But the pace of that transition is not yet fast enough. There is much further to go.” Release.