Jonathan Schachter, PhD

Quantitative Modeling Specialist with over 21 years of experience in the Financial Services industry including; corporate bonds, credit-default swaps, CDOs, CLOs, ABSs, CVA, loan loss modeling, loan indemnification, and security-based loans.

The End of LIBOR (GMT)

LIBOR Transition Consulting

Starting June 2023, the U.S. dollar London Inter-Bank Offered Rate (LIBOR) will likely be discontinued. The Alternative Reference Rates Committee (ARRC) has identified the Secured Overnight Funding Rate (SOFR) as the recommended alternative rate to replace USD LIBOR. 

A qualified LIBOR Transition Consultant can assist with the following challenges:

Risk Assessment

• Identify all existing contracts which reference one of the expiring benchmark rates

• Identify all contracts by product types, benchmarks, currencies, maturities, legal clauses

• Evaluate potential risks in each category: economic, legal, accounting, and tax, regulatory dependencies, risk management and systems, etc

• Construct an efficient transition strategy that includes all identified risks in the defined transition periods.

Modeling and Valuation Consulting

• Pinpoint all models that will need to be modified, restructured or dialed-in

• Identify any required new models (time series, term rates construction, credit spread

• Implement a new modeling strategy based on priority and complexity of models

• Outline the appropriate validation strategy, consistent with your institution’s model risk management strategy


• Identify and evaluate current rate influence on processes, data and systems.

• Highlight impacted data systems and processes

• Update current infrastructures to facilitate the gradual use of Alternative Reference Rates along with existing benchmarks

• Adapt internal controls and processes to comply with new rates and regulations


• Build model scenarios to identify and measure specific financial impacts

• Define and assess potential tax implications associated with contract modifications and amendments

• Discover dependencies with associated regulatory rules and create appropriate transition plan

Schedule a Free 30 Minute Consultation Today!

Why Is LIBOR Going Away?

Declining Investor Confidence

As investor confidence in the stability of LIBOR and other Inter Bank rates wained, the G20 requested of the Financial Stability Board (FSB) to initialize a baseline review of major interest rate benchmarks.

Reduce Systemic Risks Associated With IBORs

Specialized strategy groups across the globe were established in order to identify and develop Risk- Free Rates (RFRs) to replace existing standards and alleviate complex systemic risks.

Risk Free Rates Advantages

RFRs are more stable and predictable than IBORs because they are derived exclusively from transactional data. This change will have broad implications, mainly affecting derivative products but also loan contracts, bond agreements, leasing arrangements and many other contracts and transactions.

Do you have any questions?

Feel free to contact us anytime

LIBOR Transition Challenges

Despite the transition from LIBOR including a certain amount of uncertainty, a successful transition will depend on an individual entity’s planning and strategy prior to and during the expiration.

RFRs are less obscure in their construction, as different regulators developed replacements for their home markets

Transitioning to RFRs is a complex project that will cause organizational and technical impacts along the value chain of transactions

Transitions need to be started as early as possible in order to properly assess and manage the details and challenges associated with the elimination of LIBOR

Contact Jonathan Schachter, PhD

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