The majority of financial services firms, 79%, have some internal Libor transition plan in place, according to a new survey from Bloomberg and the Professional Risk Managers’ International Association. Seventeen percent of respondents said they have no plan in place and 4% said they were unsure.
The survey of 134 international risk professionals also found that 78% of firms have taken steps like identifying exposure and transition risks and 65% have taken steps to determine the effects of risk-free rates on legacy instruments. Operational readiness was identified by 82% of respondents as a hurdle and the same percentage said repapering existing contracts and agreements is a challenge.
Libor positions will still be part of customer portfolios at the start of 2022, the survey found, with 72% of firms saying they will likely still be holding Libor-based derivatives after the end of the year.
