Asset managers and the LIBOR transition

How asset managers can prepare now to address the challenges and risks associated with the LIBOR transition

The future of the London Interbank Offer Rate (LIBOR) has become highly uncertain since the UK’s Financial Conduct Authority announced in 2017 that it would not compel or persuade panel banks to make LIBOR submissions after 2021.

LIBOR is currently used within a broad range of financial instruments involving trillions in notional value, so institutions can expect the LIBOR transition to significantly impact a number of their functions and businesses. As efforts continue worldwide to develop alternative risk-free rates (RFR), individual firms must assess and plan for how their products, infrastructures, and customers could be affected by the transition away from LIBOR.

Asset managers face a number of sector-specific challenges and risks in this environment. Asset Managers and the LIBOR transition, a new KPMG paperdiscusses domestic U.S. challenges, their potential impacts, and how asset managers should begin to prepare now despite uncertainty. 

Asset Managers and the LIBOR transition
Download the paper to further uncover the sector-specific challenges and risks asset managers face.