Amol Dhargalkar discusses how corporates can prepare for LIBOR transition with Axios
Summary
After Chatham surveyed corporate treasurers and found 39% of respondents were not sure how to prepare for LIBOR transition, Amol Dhargalkar discusses how corporates can prepare with Axios.
AxiosThe companies that are being proactive are currently taking inventory of their total Libor exposure, moving agreements to new benchmarks where they can, and getting pricing indications to understand how to address their future needs, Dhargalkar says.
It’s a little like the tale of the boy who cried wolf. Regulators have been telling the market for more than a decade that the Libor rate benchmark’s end was nigh. But now that it’s really, seriously, going to end as of December, loads of big companies are unprepared.
Why it matters: Companies that don’t adequately prep for the death may wind up paying the price in time and money, Amol Dhargalkar, global head of corporates at financial risk adviser Chatham Financial, tells Axios.
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