LIBOR no more: How to prepare for the rate’s expected demise

Description

Abstract: For decades, financial institutions around the world have used the London Interbank Offered Rate (LIBOR) as a reference interest rate for loans and other financial instruments. But over the last several years, the marketplace has lost confidence in LIBOR for several reasons. This article explains that LIBOR will likely be discontinued after 2021 and that a global effort is currently underway to identify alternative reference rates. It notes the importance of working with the bank’s advisors to identify an appropriate reference rate for the bank — drafting fallback language that reflects the bank’s particular circumstances.