The Working Group on Sterling Risk-Free Reference Rates has today published a series of updates on progress made towards the key 2020 milestones for LIBOR transition.
The first update is a statement on how bond markets can use the proposed new SONIA compounded index and which conventions the index would be relevant to.
The second update is an indicative roadmap outlining a path for the discontinuation of new Sterling LIBOR-based cash lending by end-Q3 2020. The roadmap is a guide for both lenders and borrowers to enable them to plan how they will meet the Q3 target. It outlines a number of activities planned for the coming months, including pilots of bilateral, club, syndicated and multicurrency products.
In addition, the BoE and FCA have published a joint letter to trade associations on how discontinuation of LIBOR may affect their members. The letter provides an overview of why and when LIBOR is ending and how borrowers’ interests will be protected in transition. The letter also gives details of a free webinar run by the Working Group and others on 20 March to discuss transition in more detail from a borrower perspective.