How Many LIBOR Contracts are Considered Tough Legacy?

Published 27 July 2020 by CMi2i Editorial Team

With the mandated LIBOR transition causing headaches for issuers across various markets, many have been hoping for a legislative solution that would enable them to avoid an active transition process. Luckily for some, according to the latest statements from the UK’s Tough Legacy Taskforce, the tough legacy portion of the LIBOR market will qualify for new legislation that amends the Benchmark Regulation. The legislation will automatically determine the amendments that will be made to these tough legacy contracts — for better or worse in terms of economic consequence to the parties involved.

This bodes the question, what exactly is considered a tough legacy LIBOR contract? And how much of the LIBOR universe does this entail? Who still needs to actively transition via consent solicitation?

In its most recent report, CMi2i attempts to answer these very questions, ultimately finding an answer to the number of LIBOR contracts considered tough legacy.

The LIBOR transition is one of the biggest challenges issuers have faced. Couple that with an economic crisis and unprecedented financial circumstances, and it is no wonder that CEOs, CFOs and Treasurers have had their fingers crossed for legislation that would make the LIBOR transition go away. The reality however, is this is one headache that is not going to disappear.

Time to tackle it…


About CMi2i

CMi2i, the world’s leading forensic capital markets intelligence firm, offers an end-to-end LIBOR solution that assists issuers in the transition away from (L)IBOR to a new reference rate, via the process of consent solicitation. CMi2i specialises in the world’s most accurate Equity & Debtholder identification service and supports issuers and their advisors with investor relations, M&A, virtual AGMs/EGMs, shareholder activism, capital restructuring and reputation management goals. The company has supported more than 1000 corporate transactions, and has over 500 clients worldwide.