With the end of the London Interbank Offered Rate (Libor) looming just around the corner in 2021, there are a plethora of changes that need to happen before global reference rates sunset. The goal of this webinar is to gain a better understanding of these changes felt by the buy-side and sell-side, infrastructure firms, data providers, and others, and what’s needed to evolve the market.
Join Aite Group senior analyst Audrey Blater, Ph.D.; Societe Generale head of U.S. rates strategy Subadra Rajappa; and IHS Markit managing director Jeffrey Maron for a live webinar as they discuss several challenges around alternative reference rates. For example, a vibrant, liquid swaps market is in the process of moving to an alternative reference rate. How prepared will investors be? Of the many top-of-mind questions, concern over the use of the Secured Overnight Financing Rate (SOFR) as an adequate replacement for Libor seems to be commonplace. As 2021 approaches, procedures will need to be set, but are the needed adjustments to the market infrastructure ready?
Key discussion points will include the following:
- To date, SOFR futures trading volume has been lackluster. What is the trigger that infuses liquidity into this market ahead of the 2021 deadline?
- While there is a lot of talk about swaps, what is happening with other instruments, such as swaptions, forward rate agreements (FRAs), caps, and floors, in which rates are set in advance and paid in advance?
- How should a term structure be designed, and how will term riskfree rates compare with overnight rates?
- Is real money disadvantaged in any way by the transition from Libor? Are there winners and losers?
Clients of Aite Group's Institutional Securities & Investments practice can access the full webinar on-demand by logging into our website.
For more information about this topic or other Aite Group services, please contact us at firstname.lastname@example.org.
Audrey Blater, Ph.D., is a senior research analyst who supports Aite Group’s Institutional Securities & Investment group’s efforts, focusing on fixed income, foreign exchange, listed and OTC derivatives, and risk management research. Her work spans technological developments, industry trends, and market structure as well as the impact of financial regulations.