Interbank Offered Rates (IBORs) are expected to be replaced by new Risk-Free Rates (RFRs) across the global financial markets. Based on statements by the Financial Conduct Authority (FCA), the expectation is that the London Interbank Offered Rate (LIBOR) will no longer be a credible lending rate after the end of 2021. Work is also underway for the replacement of other global IBORs.
There is considerable work being done across the industry to develop new Risk-Free Rates. Given the complexity of changes to these critical benchmarks of the global financial system we want to share some information with you now about the anticipated transition.