The London Interbank Offered Rate (LIBOR) has historically been a benchmark index for borrowing and derivative transactions. But its days of acceptance and usage are numbered. At Regions, that final date is here. As part of its commitment to customer service and education, Regions Bank has launched a LIBOR Transition podcast series. Hosts Tyler Zinder, financial strategy and forecasting lead and treasury manager, and Irina Pritchett, LIBOR transition and strategic risk manager, offer valuable insights and answer key questions about the transition.
“We want to provide foundational steppingstones for clients as they approach conversations with their bankers, or as they digest news around the LIBOR Transition” Pritchett said about the impetus behind the series.
Covering key transition topics, Zinder and Pritchett do a deep dive into key concepts behind the transition in the inaugural episode.
“Since the last financial crisis, there has been a significant reduction in the type of trading activity that supports LIBOR,” Zinder noted. “Rate calculations have increasingly relied on expert judgment, leaving LIBOR at risk for possible manipulation.”
We want to provide foundational steppingstones for clients as they approach conversations with their bankers, or as they digest news around the LIBOR Transition.
Irina Pritchett, PhD, LIBOR transition and strategic risk manager
The series continues with a discussion around the structure of the Secured Overnight Financing Rate (SOFR) and Alternative Reference Rates Committee (ARRC) guidance, as well as insights on fallback language and the lookback period and what it means with regard to daily SOFR.
“In the US, the leading benchmark replacement to LIBOR is currently SOFR, but listeners may also be aware of other new alternatives such as Ameribor and BSBY,” Pritchett shared. “In noting the benchmark replacement, contract language is bound to vary across dates of origination, products, and institutions.”
The team will release new episodes to keep clients up to date on the latest news on alternative rates and other related topics as conversations around the transition continue. Find more information about the LIBOR Transition at Regions and find the full LIBOR Transition podcast series line up here.
Interested in learning more?
Regions is hosting a LIBOR cessation webinar on November 3, 2021 at 9:00 a.m. Central Time. Join leaders from Regions’ Capital Markets, Credit Products, Legal, and LIBOR Transition Team as they discuss the foundations and nuance of the LIBOR Transition. Panelists will address the strengths, similarities, and differences of new benchmark alternatives, and how these qualities apply to various products. To register, please visit: Regions LIBOR Cessation Webinar