• BCMstrategy, Inc.

LIBOR -- The Heat is On

Updated: Aug 7

The Bank of England remains actively engaged in pressuring market participants to move forward quickly with the LIBOR transition. As noted during our webinar last week, decreased liquidity in LIBOR-priced financial products raise liquidity and monetary policy issues that will only become more pronounced as the parallel Brexit process nears completion at year-end 2020.


Today's Financial Policy Committee (FPC) statement was overshadowed by the monetary policy decision, but it makes clear that policymakers in London urgently seek an accelerated implementation of the LIBOR transition. In particular, policymakers are making it clear that private market participants should not wait for guidance, rules (and term rates?) before replacing LIBOR with market-based benchmarks:

The challenges for risk managers and strategists everywhere have just multiplied exponentially. Policymakers in London are effectively saying that it matters little whether (or not) the risks regarding the new benchmarks can be priced appropriately. The transition needs to occur regardless.

This insight was discovered using BCMstrategy, Inc.'s PolicyScope Platform. BCMstrategy, Inc. is an early stage technology company bringing the data revolution to policy intelligence by quantifying global public policy activity daily. Daily analysis of platform data is available to individual subscribers through the PolicyScope Risk Monitor. Subscribe today today to receive data-driven insights regarding key geoeconomic policy trends.


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By BCMstrategy, Inc.

©2020 by BCMstrategy, Inc.