The impending shift from IBOR impacts many aspects of the buy-side’s businesses to varying degrees. Proposed alternatives to Libor have been SOFR, SONIA, TONA and in Switzerland SARON for contracts in Swiss francs. For example, in a recent report on the impact of the change on its business, IBM said that it expects “significant changes for our business and industry.” However, asset managers could benefit from the transition if they treat it as an opportunity to drive standardisation in contracts and fallback language, according to SIX Group’s Christian Bahr.
The impending shift from IBOR impacts many aspects of the buy-side’s businesses to varying degrees. For example, in a recent report on the impact of the change on its business, IBM said that it expects “significant changes for our business and industry.” However, asset managers could benefit from the transition if they treat it as an opportunity to drive standardisation in contracts and fallback language, according to SIX Group’s Christian Bahr.