• BCMstrategy, Inc.

QOTD: The Fed Speaks on #LIBOR

The steady drumbeat of warnings and advice from central banks regarding the LIBOR transition takes us to New York today.

Like the Bank of England a few days ago, the New York Fed is warning market participants very clearly that a legislatively mandated cut-and-paste approach to updating legacy contracts is NOT the way to address the full scope of risks associated with the transition to market-based benchmarks:

At some point, probably in 2021, policymakers will shift from providing warnings to taking regulatory action. Be ready to spot inflection points in the policy cycle by subscribing today to the PolicyScope Platform, which delivers daily automated policy-related data and delivers to users an alert every time a policymaker uses a technical term related to the LIBOR transition. You will be in the flow of the policy reaction function, ready to spot inflection points as they emerge.

If instead you prefer to read our analysis of LIBOR transition policy trends, subscribe today to the PolicyScope Risk Monitor. Every day, as Asian markets open, you will receive data-driven analysis of policy activity regarding selected global macro trends visible on the PolicyScope Platform. Whenever LIBOR issues pop up, we deliver flash analysis.