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From LIBOR to SONIA – The pace quickens

From LIBOR to SONIA – The pace quickens

In an earlier blog we set out the basics of how the transition from LIBOR to SONIA would be effected. The matter has become more pressing as since October 2020 Banks have been providing detailed drafting to document the proposed transition and it was announced on  5 March 2021 that LIBOR as currently calculated would no longer be available from 1 January 2022. We examine some key issues below:

Spread

Although other periods are possible, LIBOR has generally been offered to the sector for periods