Investment managers making progress on LIBOR transition - IA

Investment into SONIA products underway

Asset managers have made "significant progress" in the transition away from LIBOR-linked benchmarks, with two-thirds having invested in instruments linked to its replacement, SONIA, in 2019, the Investment Association (IA) has said.

In a statement, the IA said 92% of its members it surveyed had assessed their exposure to LIBOR, with 70% having reduced their exposure through 2019 and 65% having already invested in instruments based on SONIA, the new risk-free rate. Around $350trn of financial products must transition away from the London Interbank Offered Rate (LIBOR) in favour of SONIA by the end of 2021. Potential delay to LIBOR phase out due to coronavirus - reports The IA added that three-quarters (75%) of those it asked had an approved budget, in some cases in excess of £2m, in place to complete the transi...