Swiss perspective on IBOR Transition
IBOR-Reform
18. Februar 2019

Swiss perspective on IBOR Transition

On Monday, February 11th 2019 Christian Behm participated the Flagship Event at Swiss Risk Association “LIBOR –Past, Present And Future”.

We would like to highlight following aspects of this highly valuable event:

  • SNB identified LIBOR shortcomings early and developed a vision and a SARON roadmap in 2009 already (long before IOSCO priciples)
  • The character of the ARR differs significantly compared to LIBORs which results in implications on banks steering
  • Backward-looking term rates are feasible and come with certain benefits compared to OIS derived term rates (e.g. lower volatility; forwards are a poor indicator of future rates)
  • Harmonization across currencies is desired due to cross-currency markets
  • From a Swiss perspective it is rather surprising to observe Eurozone stakeholders believing (or supporting) in a long term surviving Euribor
  • The FINMA Dear CEO Letter helped to increase necessary awareness and serves as a catalyst for necessary preparation in organizations
  • Proposed EONIA-ESTER transition path could also serve as an example for the transition away from LIBORs

Thanks to SRA and the other speakers Martin M. Bardenhewer, Jean-Noël Ardouin, Serena Fioravanti and Andreas Bitz for sharing their valuable insights.

Christian Behm
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Christian Behm

Christian Behm, CFA, ist seit 2004 bei LPA. Er verfügt über breite Erfahrungen im Bereich der Bankenberatung mit einem Kapitalmarktfokus. Als Partner verantwortet er den Geschäftsbereich Risk & Quant Consulting und betreut große Kundenmandate.

Christian Behm
Christian Behm
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Christian Behm
Christian Behm
Ihr Ansprechpartner für
Risk & Quant Consulting

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Christian Behm
Christian Behm
Ihr Ansprechpartner für
Risk & Quant Consulting
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