For decades, market participants have used LIBOR as the benchmark reference for determining interest rates for debt instruments, including structured securities, corporate debt (including money markets), and municipal bonds. However, beginning on June 30, 2023, securities that reference LIBOR will not have a published index to use for interest rate calculations, pricing or valuation and will need to be updated.
Matthew Schill, DTCC Director, Product Management, discusses the impact of the fast-approaching retirement of the LIBOR benchmark rate and how firms can prepare to ensure smooth transition to SOFR or an alternative reference rate.