The LIBOR Transition

PGIM Fixed Income

March 2019

Gary Horbacz, CFA, Principal, Structured Products Team, and Jason Pan, CFA, FSA, Senior Associate, Structured Products Team 

Planning for the market’s transition from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) has accelerated recently, but substantial uncertainty remains as to how and when the conversion of nearly $370 trillion of financial products will occur. In PGIM Fixed Income's second white paper on the LIBOR transition, they discuss: (1) the progress to date; (2) critical future milestones; and (3) concerns regarding the sufficiency of SOFR as an adequate LIBOR replacement.