The End of LIBOR: Are you ready for Replacement Rates? What about HIBOR?

LIBOR will cease to be available at the end of 2021. It will be replaced by a Risk Free Rate (RFR) for the relevant currency. Regulatory supervisors are pushing the financial sector to reduce LIBOR inventories as quickly as possible, meaning that RFRs must be embraced across LIBOR portfolios sooner rather than later. In certain sectors of the market, the move to RFRs has begun. Where LIBOR continues to be used, various options for referencing RFRs are under review.

This briefing outlines the progress towards transition from LIBOR and the methods currently under discussion for referencing RFRs in place of LIBOR. It also considers the implications for HIBOR of the transition from LIBOR to RFRs.