Announcing LiborHub

DealVector is pleased to announce the launch of LiborHub, a resource for the industry as it navigates through transition issues. Libor is implicated in approximately $10 trillion cash instruments. Though derivatives under ISDA have a somewhat straightforward standardized transition process, the amendment process for cash instruments can vary widely.

For example, depending on the asset class, the following replacement language may apply:

• Seek two or more ad hoc quotes from reference banks to determine a rate
• Use other reference rate, which may vary materially from LIBOR, such as Prime
• Convert to fixed rate at last published level
• Poll banks for new rate

The process for adoption also varies widely. In some cases, unanimity may be required; a very high hurdle.

Furthermore, specific transactions may differ from these general asset class rules of thumb.

DealVector LiborHub therefore will operate as both a general discussion group and a deal-specific resource so that parties to particular transactions can coordinate.

Register today to begin managing your transition issues more efficiently!