Monthly Archives: October 2020

A new era of benchmark rates: The IBOR Reform

Tobias Bumm/ October 20, 2020/ Uncategorized

For decades, IBORs set the benchmark rate for a wide range of financial products such as derivatives, bonds, loans, structured products, and mortgages to determine interest rates and payment obligations. Since the financial crisis, regulatory authorities and working groups all over the world have been discussing alternative risk-free rates (RFRs). Since the RFRs are distinctly different in amount and volatility to the IBOR interest rates, the transition will require considerable transformation efforts from both financial service companies and market participants.