LIBOR Transition Readiness: The Current Narrative

The 2020 Numerix LIBOR Transition Survey included participants from 55 firms across the global financial services industry, including banks, advisors/consultants, asset managers, insurers, and broker/dealers. Our objective for conducting the survey was to explore what financial institutions are doing to prepare for the switch to alternative reference rates and to understand how far along various firms are in their transition progress.

The results of the survey draw a mixed picture of preparedness for the upcoming transition from LIBOR to risk-free rates, with, notably, only 28% of institutions describing their transition program as mature.

One conclusion we can derive from our survey is that there appear to be conflicting viewpoints regarding the importance of readiness and priorities. While many firms across the financial services industry are aware that the path to transition will be long and complicated, many others seem to lack a clear understanding of the level of focus required to address the real impact of the transition, at least according to our data.

The survey’s findings are based on the following questions:

• As you consider the state of your LIBOR reform program, how would you characterize your firm’s preparedness?
• Has your firm purchased or built the required technology, infrastructure and data systems to adapt to new alternative reference rates?
• What challenges (if any) are hampering your LIBOR transition efforts?
• Do you believe the 2021 deadline will be the true discontinuation of LIBOR

Complete the form to review the full results.