Transition from IBORs in the loan market

IBOR Transition

LIBOR is an interest rate benchmark which has been phased out. No new loan facilities should be using LIBOR. From 1 January 2022, publication of most LIBOR settings ended. The US dollar LIBOR panel ended on 30 June 2023.  The overnight and 12-month US dollar LIBOR settings have now permanently ceased. The 1-, 3-, and 6-month US dollar settings will continue to be published under a synthetic methodology. Work is ongoing on the transition of legacy LIBOR facilities to alternative near risk-free rates and there is work to do in transitioning IBORs in a number of currencies. The LMA is working with the market, other trade associations and the regulators on the transition.

Countdown to cessation of synthetic US dollar LIBOR

(1-month, 3-month & 6-month synthetic US dollar LIBOR)

Latest News

LMA RFR Documentation Survey – Please complete by 2 August 2024

Click Read more to take part in our survey on the LMA’s RFR documentation suite. The results of the survey will help us in our ongoing process of reviewing and consolidating our documentation suite. 

The survey consists of 12 questions and requests your views on various RFR related documentation topics including EURIBOR fallbacks, alternative term rates, term SOFR fallbacks, baseline CAS and the most often used interest rate drafting. The survey should take no more than ten minutes to complete and should be completed in one go.

Synthetic US dollar LIBOR: FCA publishes 3-months to go reminder

On 28 June 2024, the FCA published a reminder of the expected cessation of the remaining synthetic US dollar LIBOR settings (the 1-, 3- and 6-month settings) at the end of September 2024.

The FCA urged market participants with outstanding US dollar LIBOR exposures to ensure they are prepared for these remaining LIBOR settings to cease by the expected deadline. The cessation of these remaining settings will be the last milestone in the transition away from LIBOR, marking the end of LIBOR overall.

Canada: Publication of CDOR ceases after 28 June

Publication of all three tenors of CDOR will cease to be published after 28 June 2024. All new loan agreements for Canadian dollar must, going forward, reference an alternative rate, for example compounded CORRA or Term CORRA.

To assist the market with transition, as a reminder, the LMA published in October 2023, a revised version of its CORRA Schedules which contains wording for both compounded CORRA and term CORRA for use in conjunction with the compounded rate facilities agreements and the investment grade Term SOFR facilities agreement respectively.

For further information on the cessation of CDOR, and to access CARR’s key documents and other reference materials including recommended conventions and fallbacks, please click Read more to visit the CARR’s webpage.

Video Content

LMA Webinar On Demand - Transition from IBORs in the loan market: Where are we now? June 2024