The International Swaps and Derivatives Association, Inc. (ISDA) and several other financial market focused associations recently published a transition roadmap that focuses on the issues, steps and key challenges that will arise as the financial markets transition from utilizing interest rates based on LIBOR and other interbank offered rates (known as IBORS) to interest rates based on to-be-developed alternative risk free rates (RFRs).
The roadmap aggregates and summarizes in one place information published by regulators and various public-/private-sector RFR working groups in order to provide a single point of reference for the work done so far to select alternative RFRs and plan for transition.
Given the widespread use of IBORs in financial transactions including syndicated loans, derivatives contracts, public debt instruments, and deposit contracts, the task of moving to new RFRs rates is immense and raises a multitude of legal, accounting, tax, regulatory and market issues
. Please see the
referred to in the press release for details.