U.S. Dollar LIBOR, the ubiquitous interest rate benchmark used
in over $200 trillion of transactions worldwide, is going away.
Regulators have issued stern warnings against its continued use in
new transactions after this year. The publisherof LIBOR and its
U.K.regulator have announced that LIBOR will no longer be published
as a representative rate for new or legacy transactions afterDec.
31, 2021, for 1-week and 2-month tenors, and after June 30, 2023,
for all other tenors. It is estimated that $90 trillion of legacy
transactions will be outstanding at that time, including mortgages,
consumer loans, syndicated business loans, swaps, bonds,
securitizations, and other products. Through significant efforts by
financial market participants, the vast majority of these legacy
transactions are expected toinclude language that contemplates the
end of LIBOR, or will mature before LIBOR ends.
