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New webpage supports shift to new benchmark rates

As there has been a considerable rise in interest in the LIBOR reform from our corporate customers in the past few months, the IBOR Transition Programme in Danske Bank is launching a new external webpage dedicated to the benchmarks reform.

The new page IBOR | C&I Danske Bank (danskeci.com) guides customers through some of the changes as well as provides general updates on the current state of the transition away from LIBOR. The latter is important since no one expected the transition away from LIBOR or any other benchmark to be easy.

At the outset, some doubted whether the transition was even possible. However, with a half a year left before the expected cessation of the LIBOR as a regulated benchmark, the transition certainly remains achievable and on schedule.

“Much progress has already been made in Danske Bank. We see a growing number of new transactions referencing new replacement benchmarks. Trading volumes in the major Risk Free Rates (RFRs) are gaining momentum and the markets anticipate seeing even greater liquidity shift from LIBOR to the RFRs this year”, says Žaneta Troško, Loan Capital Markets Stream Lead on IBOR reform, and continues:

“However, many strategic, operational and technological risks remain. For example, the multiple potential SOFR settings and continued desire for Term SOFR created a sense of inertia in the USD LIBOR reform. In face of these challenges, it is imperative that Danske Bank and the customers put plans in place in order to adapt to this transition, including phasing out LIBOR and replacing them with the new RFRs.”

New webpage to raise awareness
The IBOR Transition Programme in Danske Bank has specifically designed this webpage IBOR | C&I Danske Bank (danskeci.com) to raise awareness among our customers as a first step that would allow them to perform an initial impact assessment and build a comprehensive transition plan. 

And the new webpage is crucial when it comes to supporting the change for the customers in Danske Bank:

“As clear timelines for the cessation of all LIBOR panels have now been confirmed, the IBOR Transition Programme in Danske Bank believes that it is particularly important to reinforce the message and the timeline from regulatory authorities to all our customers. The time for waiting is over, we need to act now,” says Tim Trainor, Programme Manager – IBOR Transition.

What does the customers gain from the new IBOR-webpage?

  • An update of the current state of the LIBOR transition
  • New RFR conventions and differences across various financial assets
  • An update on other IBORs that may transition in the future
  • An update on fallbacks for contractual arrangements 
  • Impact on hedges

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