Act now on LIBOR transition: IA's stark warning to FTSE 350 bosses

£108bn of outstanding corporate bonds still in circulation

Mike Sheen
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Many companies have agreed a fair transition for their LIBOR-linked bonds according to the IA
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Many companies have agreed a fair transition for their LIBOR-linked bonds according to the IA

The Investment Association (IA) has told FTSE 350 firms still issuing LIBOR-linked sterling bonds "time is running out" and urged them to transition to an alternative reference rate or risk "significant market disruption and harm to investors".

Less than a year from the transition deadline, £108bn of outstanding LIBOR-linked corporate bonds remain in circulation, according to the IA, which said its members are willing to "consider alternative arrangements" with investee companies, including buybacks. In February last year, the Financial Conduct Authority (FCA) warned asset management firms to "act now" and take "immediate action" to shed themselves of exposure to LIBOR-linked investments and benchmarks. Five months later, the IA said asset managers had made "significant progress" in the transition away from LIBOR-linked benc...

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