Legacy contracts key hurdle in Libor switch, Fitch says

By Jennifer Kang
02 Oct 2019

Progress on Libor transition has been uneven across jurisdictions and sectors globally, Fitch Ratings said in a report published this week. Though the switch is underway, modifying legacy contracts and making the transition in consumer products still remain the two biggest challenges for structured finance, particularly in the US, the rating agency said.

The US dollar market is lagging behind the sterling market in adopting Libor replacement, according to Fitch. However, with the Alternative Reference Rates Committee (ARRC) leading the initiative, more US market participants are looking at applying the committee’s guidelines to ensure a successful transition to a new benchmark ...

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