As the COVID-19 situation continues to evolve, market volatility, workplace disruptions and a shuttering of everyday life are becoming increasingly commonplace. While the 2021 LIBOR phase-out may not seem top of mind during the current crisis, speculation is mounting about whether the pandemic will delay or otherwise alter the phasing out of the “world’s most important number.”
As a refresher, the LIBOR transition was fueled by a lack of transparency in pricing this key index. Per the Loan Syndications and Trading Association, $200 trillion of LIBOR-based contracts were derived from less than $1 billion of daily LIBOR trading, leaving the benchmark subject to manipulation and fraud.
Read the full GT Alert, All Systems Go? LIBOR Transition Efforts During the COVID-19 Pandemic.