Transforming Interest Rate Benchmarks – Are you ready for Risk Free Rates?

Supervisory pressure on the financial sector to reduce LIBOR inventories as quickly as possible suggests that Risk Free Rates (RFRs) must be embraced across LIBOR portfolios sooner rather than later.

In certain sectors of the market, the move to RFRs has begun. Where LIBOR continues to be used, various options for referencing RFRs are under review. Now is the time for market participants to weigh up their preferences – and weigh in on the debate. 

This briefing outlines the reasons for the differing pace of transition to RFRs between asset classes and how RFRs are starting to be used in mainstream financial products.