Despite the continuing widespread fallout from the coronavirus pandemic, international and US financial regulators and financial industry working groups have recently reiterated that December 31, 2021, remains the anticipated cessation of the London Interbank Offered Rate (LIBOR). In view of this, efforts to prepare for the transition from LIBOR remain paramount in order to avoid widespread disruption to financial markets, products, and participants. This memorandum summarizes this recent guidance and various suggested best practices to aid and advance a smooth transition from LIBOR in advance of the end of 2021.

LIBOR is the most widely used reference rate for a variety of financial products, including syndicated and non-syndicated loans, consumer loans such as mortgages and student loans, and variable rate notes. It is estimated that US dollar LIBOR is the reference rate for as much as $200 trillion in various products. Continue reading >