Investment Operations

The Post-LIBOR Adjustment: SOFR and SONIA

Categories Introductory

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

8:30 am - 12:30 pm​

Description

*This course can be offered upon request and can be customized to fit your team’s needs.

Date: June 3

This comprehensive introductory-level course on the transition away from LIBOR as a reference rate provides participants with a thorough review of how and why this change came about, the effect it has had on related products and the current newly formed marketplace. The program walks participants through how LIBOR came to end and what considerations were given to developing the Secured Overnight Financing Rate (SOFR). Using numerous real-world examples, participants will be provided with the mechanics of the replacement rates and as well as considerations of other rates that may be used in the future.

Learning Objectives

  1. Understand how and why LIBOR was created and replaced
  2. Explain how SOFR was developed and its differences to LIBOR
  3. Describe the adjustments that the marketplace has made during this transition
  4. Identify the effect the transition has had on key products, transactions and businesses
  5. Examine other overnight funding markets and products that have developed around the transition
  6. Review recent events around the rate transition
  7. Identify and describe other overnight funding rates

Prerequisite: None

Agenda

LIBOR as a reference rate

  • Why LIBOR was developed
  • How LIBOR was determined
  • LIBOR manipulation and resulting action
  • LIBOR legacy products

Impact of LIBOR Transition in the Marketplace

  • Issuers
  • Key products and transactions
  • Market participants
  • Current adjustment period
  • Key risks
  • Market reactions

Alternative Rate Considerations

  • Credit Sensitive Rates (CSRs)
  • Credit Inclusive Term Rate (CRITR)
  • Credit Inclusive Term Spread (CRITS)
  • Bloomberg Short-Term Bank Yield Index (BSBY)
  • AMERIBOR
  • Others

Group Exercise:  What are the pros and cons of SOFR as it currently exists?

SOFR Derivatives

  • SOFR futures
  • SOFR options
  • Other products

Global Reference Rates

  • SONIA
  • TONA
  • EONIA transition

Current Marketplace

  • Product adjustments
  • Derivative trading
  • Developing challenges
  • Current outlook

Summary and Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

8:30 am - 12:30 pm​

Description

*This course can be offered upon request and can be customized to fit your team’s needs.

Date: June 3

This comprehensive introductory-level course on the transition away from LIBOR as a reference rate provides participants with a thorough review of how and why this change came about, the effect it has had on related products and the current newly formed marketplace. The program walks participants through how LIBOR came to end and what considerations were given to developing the Secured Overnight Financing Rate (SOFR). Using numerous real-world examples, participants will be provided with the mechanics of the replacement rates and as well as considerations of other rates that may be used in the future.

Learning Objectives

  1. Understand how and why LIBOR was created and replaced
  2. Explain how SOFR was developed and its differences to LIBOR
  3. Describe the adjustments that the marketplace has made during this transition
  4. Identify the effect the transition has had on key products, transactions and businesses
  5. Examine other overnight funding markets and products that have developed around the transition
  6. Review recent events around the rate transition
  7. Identify and describe other overnight funding rates

Prerequisite: None

Agenda

LIBOR as a reference rate

  • Why LIBOR was developed
  • How LIBOR was determined
  • LIBOR manipulation and resulting action
  • LIBOR legacy products

Impact of LIBOR Transition in the Marketplace

  • Issuers
  • Key products and transactions
  • Market participants
  • Current adjustment period
  • Key risks
  • Market reactions

Alternative Rate Considerations

  • Credit Sensitive Rates (CSRs)
  • Credit Inclusive Term Rate (CRITR)
  • Credit Inclusive Term Spread (CRITS)
  • Bloomberg Short-Term Bank Yield Index (BSBY)
  • AMERIBOR
  • Others

Group Exercise:  What are the pros and cons of SOFR as it currently exists?

SOFR Derivatives

  • SOFR futures
  • SOFR options
  • Other products

Global Reference Rates

  • SONIA
  • TONA
  • EONIA transition

Current Marketplace

  • Product adjustments
  • Derivative trading
  • Developing challenges
  • Current outlook

Summary and Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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