FCA hails success of UK Sonia transition

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By Tom Brown
16 Sep 2020

The UK should be seen as the “poster child” of the transition from inter-bank offered rates (Ibors) to risk-free rates, said a spokesperson from the Financial Conduct Authority, speaking at Global ABS 2020 on Wednesday, who urged the ABS market to turn towards solving the problem of legacy issuance.

The European Investment Bank issued the first Sonia bonds in June 2018. Since then, almost all primary issuance in the ABS market has switched over to the new reference rate.

About £12bn of sterling Libor-linked bonds have also been converted via consent solicitation, which has been led both ...

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