On July 12, 2019, the staffs of several divisions within the SEC published a statement on the transition away from the London Interbank Offered Rate (“LIBOR”). The panel banks which currently report information used to establish LIBOR for different currencies have committed to do so through 2021. After 2021, it is likely that LIBOR will cease to be reported, and, even if it is reported after 2021, it may no longer be a viable representation of interbank borrowing costs for the applicable tenors. In a July 15, 2019 speech, Andrew Bailey, chief executive of LIBOR’s regulator, the Financial Conduct Authority of the United Kingdom, stated that the “base case” assumption for firms’ planning should be no publication of LIBOR after the end of 2021.
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