LIBOR transition past, present, and future

The first and most significant tranche of LIBOR tenors was retired as of December 31, 2021, officially marking the beginning of the end for the benchmark reference rate that in recent years became the focus of banking reform efforts by regulatory bodies around the globe.

This week Heather Horn was joined by Justin Keane and Nick Milone, partners in PwC’s Financial Markets practice, and Chip Currie, PwC National Office partner, to discuss the latest market and regulatory developments in the LIBOR transition as well as the related accounting guidance that was issued to facilitate the transition for preparers.

In this episode you’ll hear them cover:

• 1:15 - An update on market transition efforts to date, expectations for the next year, and an overview of why overnight funds rates are becoming the primary reference rates
• 8:35 - US regulatory and market developments with respect to USD LIBOR
• 13:25 - Credit-sensitive rates and whether a widely accepted benchmark will emerge
• 17:52 - Important focus areas for companies as LIBOR continues to sunset, as well as impediments and best practices in transition workstreams
• 26:30 - What accounting teams should be watching out for as their companies modify contracts and take other steps to facilitate the transition
• 35:55 - The SEC staff’s statement from December 7, 2021 on LIBOR transition and the importance of updating investors on related progress

Want to learn more? 

• Listen to our previous podcast on reference rate reform, Bidding farewell to LIBOR: What you need to know.
• Download PwC’s Reference Rate Reform guide.

Justin Keane is a partner in PwC’s Financial Markets practice. He has over 20 years of experience helping clients resolve issues related to pricing and risk management for derivatives and complex financial instruments across PwC’s leading multinational clients.

Nick Milone is a partner in PwC’s Financial Markets practice where he advises companies on current financial instruments issues and the application of accounting standards. Prior to this role, Nick was a Practice Fellow on the financial instruments team at the FASB, where he helped lead the hedge accounting and recognition and measurement projects.

Chip Currie is a Partner in PwC’s National Office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.