Introduction

This Quick Guide is intended to highlight the key issues on which ICMA is focused in the transition from IBORs to alternative near risk-free reference rates (“RFRs”) in the international bond market (including floating rate notes (“FRNs”), covered bonds, capital securities, securitisations and structured products, together, “bonds”); and provide links to relevant resources. More information is available on the ICMA benchmark reform and transition to RFRs webpage and from the ICMA contacts listed below.

This Quick Guide reflects the position as at its date, but market participants should note that there are frequent market and other developments in the transition to RFRs.

You may download the PDF document or navigate through the webpages via the links in the contents menu below.


ICMA Contacts:

Paul Richards, Managing Director, Head of Market Practice and Regulatory Policy, Direct line: +44 20 7213 0315
Katie Kelly, Senior Director, Market Practice and Regulatory Policy, Direct line: +44 20 7213 0331
Charlotte Bellamy, Senior Director, Market Practice and Regulatory Policy, Direct line: +44 20 7213 0340




Contents

Transition to RFRs - how is ICMA involved?
A summary of ICMA’s involvement with the transition to RFRs in the international bond market, including links to further resources.

The need to transition to RFRs
A summary of why markets need to transition to RFRs, including links to further resources.

New RFR-linked floating rate notes
A summary of progress in new issues of FRNs and securitisations, including links to further resources.

The differences between LIBOR and RFRs
A summary of the differences between LIBOR and RFRs, including links to further resources.

RFR bond market conventions
A summary of RFR bond market conventions, including links to further resources.

Use of term rates
Information on the use and availability of term RFRs, including links to further resources.

Fallbacks in IBOR bonds
Information on fallbacks in IBOR bonds, including links to further resources.

Legacy LIBOR bonds
Information on the issues surrounding bonds which already reference LIBOR and which are due to mature beyond the end of 2021, including links to further resources.

Spread adjustment
Details of different spread adjustment options, including links to further resources.

EU Benchmarks Regulation and regulatory issues in the UK
A summary of ICMA’s response of December 2019 to the European Commission’s consultation on the EU Benchmarks Regulation; and a summary of efforts to highlight relevant regulatory and conduct issues in the UK, including links to further resources.

ICMA documentation
A summary of the impact of IBOR transition on ICMA documentation.

Next steps/key priorities
Links to publications detailing the key priorities and next steps for the official sector sponsored working groups and information on next steps for certain markets.




Disclaimer

This Quick Guide is provided for information purposes only and should not be relied upon as legal, financial, or other professional advice. While the information contained herein is taken from sources believed to be reliable, ICMA does not represent or warrant that it is accurate or complete and neither ICMA, nor its employees, shall have any liability arising from or relating to the use of this publication or its contents, including any information contained on any third party website which may be referred to or accessed through any of the hyperlinks therein.

© International Capital Market Association (ICMA), Zurich, 2020. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission from ICMA.



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