The U.S. financial services industry is moving away from the scandal-ridden London Inter-bank Offered Rate, or LIBOR, and transitioning to the relatively new Secured Overnight Finance Rate (SOFR). The push to SOFR will impact corporate and municipal bonds and loans, floating rate mortgages, asset-backed securities, interest rate swaps and other derivatives. The end of LIBOR will impact SEC-registered investment advisers, broker-dealers, investment companies, municipal advisors, transfer agents, and clearing agencies. Firms will need to revamp their IT systems, controls, processes, and risk/valuation models to incorporate SOFR. In addition, firms will need to embrace new data flows and data distributions for internal and external usage of the benchmark. They are also likely to embrace digitized contracts, and emerging artificial intelligence (A.I.) technologies to ease the way forward.
What you will takeaway from this session: