Solutions / Regulation
Bloomberg solutions for LIBOR transition
LIBOR transition is firmly underway.
The UK Financial Conduct Authority has solidified end dates for all 35 London Inter-bank Offered Rate (LIBOR) indices, while official bodies globally have issued clear guidance to the market to cease trading new LIBOR-based products by specific dates throughout 2021. As the global leader in financial data and technology, Bloomberg has been at the forefront of efforts to support the markets during the LIBOR transition.
Solutions
We offer a comprehensive suite of data, analytics and portfolio solutions to help firms assess the impact of the transition to alternative reference rates, with our industry-leading technology providing transparency and supporting adoption for all new rates to help you at every step of the journey.
Looking for LIBOR fallback rates?
The end of LIBOR represents a fundamental shift for the fixed income markets. We offer a range of tools to help firms prepare and transition into the post-LIBOR world.
Our electronic trading venues help buy-side and sell-side clients discover value, trade and report with confidence. With direct connectivity to all major clearing houses, clients can execute alternative-rate derivatives in all LIBOR currencies, trade standard derivative conventions, and customize dates and frequencies to reflect desired exposure.
Our Swap Curve Builder tool enables you to analyze and customize interest-rate curves, determine funding costs for swap and derivative transactions, value your trades’ performance, and calculate the present values of future cash flows.
In our calculators and trade-ticketing functions, we’ve added support for floating-rate residential-mortgage-backed securities and asset-backed securities that use a new alternative rate.
We offer multiple datasets to support firms in working through the challenges of the LIBOR transition while minimizing disruption to operations.
BISL/ISDA IBOR fallback tickers
With LIBOR-referenced swap contracts facing cessation by the end of 2022, ISDA has implemented adjusted versions of RFRs to serve as IBOR fallbacks, selecting Bloomberg as the official adjustment services vendor for these fallbacks. Bloomberg Index Services Ltd (BISL) publishes daily IBOR fallback tickers, with the two primary Terminal resources being FBAK and ISDA.
Multi-Asset Risk System (MARS)
MARS enables firms to efficiently and accurately structure and manage risk across portfolios of loans, bonds, mortgages, swaps and other fixed income products.
Portfolio & Risk Analytics (PORT)
PORT allows clients to analyze their portfolio relative to a benchmark using alternative-rate curves and analytics.
Asset & Investment Manager (AIM)
For buy-side firms, AIM delivers global, multi-asset solutions for portfolio management, trading, compliance and operations. We’ve invested strongly in the enterprise data, analytics & risk solutions that power AIM.
Trade Order Management Solutions (TOMS))
For sell-side firms, TOMS fully supports trading of new alternative-rate products across all currencies and asset classes, including interest-rate derivatives, fixed income, money market and mortgages.
BSBY aims to represent a series of credit-sensitive reference rates that incorporate systemic bank credit spreads, defining a forward term structure. BSBY seeks to measure the average yields at which large, global banks access USD senior unsecured marginal wholesale funding. BSBY is not available for use as a benchmark under the UK BMR and must not be used as a benchmark in the United Kingdom. BSBY will only be available for use as a benchmark in the United Kingdom following an announcement by BISL that BSBY is ready for launch in the United Kingdom market in compliance with the UK BMR.
BSBY index to cease
On November 15, 2023, BISL announced the permanent cessation of the BSBY index and all tenors, available here. Please note that the final publication of the BSBY index and all tenors will take place on Friday, November 15, 2024 (the “Cessation Date”). The cessation will take effect immediately following the publication of the rate for each BSBY tenor.
LIBOR Transition: Expert Views
We interviewed industry leaders and regulators to hear their views on the latest LIBOR developments, gleaning advice to help you manage the process and actively transition your portfolio.
Arif Merali
Senior Adviser, Markets Directorate, Bank of England
Kari Hallgrimsson
Managing Director and Co-Head of EMEA Rates Trading, J.P. Morgan
Maria Daniels
Senior LDI Core PM & LDI LIBOR Transition Programme Lead, BlackRock
Philip Whitehurst
Head of Service Development, Rates Derivatives, LCH
Webinars
Keep track of the latest on LIBOR with our live and on-demand webinars.
LIBOR Transition – the Home Stretch
After the first successful phase of LIBOR transition for GBP, CHF and JPY, the key transition date for USD on 30 June 2023 is fast approaching, along with developments in other currencies.
LIBOR Series: Derivatives & analytics
Learn how Bloomberg has been upgrading its derivatives pricing and analytics to accommodate alternative rates and fallbacks
LIBOR Transition Talks
Gain practical insights from a range of market participants navigating this seismic shift to new rates. Hear your peers share their transition plans, with views on the latest developments and how markets will shape up post LIBOR.
Introducing BSBY
Learn how BSBY, a proprietary credit-sensitive index that’s calculated and published daily, will offer market participants an index with a forward term structure to help manage their funding and investment processes during the LIBOR transition.
Insights
Getting your hands dirty with LIBOR transition
The FCA (Financial Conduct Authority) announcement on LIBOR cessation timelines in early March has provided much needed clarity to the market.
Singapore passes LIBOR milestone with $128 billion at stake
Singapore banks are pressing on in their transition away from the discredited London interbank offered rate as financial centers around the world are facing deadlines to move off LIBOR-priced loans and securities.
LIBOR enters ‘final chapter’ as global regulators set end dates
Regulators kicked off the final countdown for the London interbank offered rate Friday, ordering banks to be ready for the end of a much maligned benchmark that’s been at the heart of the international financial system for decades.
How would it work for your enterprise?
Get in touch with a LIBOR specialist to learn more.