Benchmark rate reform for debt-based cash instruments

Event details

17 September 2020

Virtual event

Sanne is participating as a speaker at the Benchmark rate reform for debt-based cash instruments event in London on 17 September 2020.

Event image

This session will provide in depth knowledge into the LIBOR overhaul purpose, the new rates and their purpose as well as a deep dive into the fundamental product design differences that come with the usage of an overnight rate. Join this master-class to explore the implications of the IBOR transition on the financial industry and safeguard your institution to weather the coming storm.”

The transition away from Libor is a matter of great uncertainty. As the clock ticks forward toward the demise of Libor in 2021 key questions remain unanswered. With over $400 trillion worth of contracts linked to LIBOR in major currencies, now is the key time to prepare your institution.

The term structures of the new reference rates still requires clarity and in the debt-based cash instruments market, an overnight rate is detrimental to the methodology of the industry. In addition to this, with trillions of dollars worth of legacy inventory referencing LIBOR, banks must prepare themselves for every unknown eventuality. This marcus evans event will focus on the move to a risk free rate on term agreements for floating bonds and loans in the cash market and provide important market updates on approaches to the transition to a risk free rate.

Key topics will include:

  • Discover the feasibility of using a risk free rate in the cash market and market updates on Sonia and Ester
  • Convert legacy cash instruments to a risk free rate with consideration to fallback arrangements
  • Adoption of risk free rates for the issuance of cash instruments with particular focus on tenor
  • Establish how the issuance and hedging of cash instruments will work in practice
  • See how the international cash market is preparing itself for transition to a risk free rate