LIBOR Transition Readiness: The Current Narrative

The decommission of LIBOR is making a huge imprint on the global financial services sector. The transition from LIBOR to alternative reference rates may just be the largest financial engineering project the world has ever seen. While the capital markets industry has observed that many of the largest global banks have started planning early for the transition away from LIBOR to replacement benchmarks, many other institutions are behind in their preparations.

To better understand the industry’s level of preparedness for switching from LIBOR to alternative reference rates (ARRs), we conducted a global survey of financial services market participants. The results of the survey show that lack of preparation certainly does exist, but our findings also suggest the challenges hampering LIBOR transition efforts vary considerably.