LIBOR Transition: IHS Markit Throws Its Hat Into The Ring

Immediately following the Memorial Day holiday, IHS Markit announced the launch of its Credit Inclusive Term Rate (CRITR) and Credit Inclusive Term Spread (CRITS). At this point, the rates are not available for use and are being published to allow market participants to evaluate how they work. The methodology used to determine the rates is not easily accessible on the IHS Markit website, but the website says that it will be eventually. The rates are self-certified as IOSCO compliant, although this is not independently certified currently. It is not clear when or if they will be approved by regulators.

That's a lot of "nots." Still, it's a start. Bloomberg's BSBY rate went from indicative rate to first alternative rate syndicated loan (ahead of SOFR) in about seven months. IHS Markit is no lightweight?it's a $44 billion company that is set to merge with S&P Global in the second half of 2021.