Kevin Jones explains to the Wall Street Journal why U.S. corporates are unlikely to extend their LIBOR transition
Summary
U.S. companies consider their transition from LIBOR to SOFR as the June 30 deadline approached. In the Wall Street Journal, Kevin Jones explains why delaying the transition doesn't appeal to most U.S. corporates.
Kevin Jones in the Wall Street Journal“A lot of our clients would rather be in line with the market than be an outlier.”
Efforts to extend the transition from LIBOR aren’t likely to be widely popular among companies, advisers said, in part because they are often costlier than the alternative and out of step with the market.
“A lot of our clients would rather be in line with the market than be an outlier,” said Kevin Jones, head of the corporate hedging advisory team at financial-risk adviser Chatham Financial Corp.
“Whatever costs there are of switching to SOFR, delaying in that fashion isn’t going to change that,” Mr. Jones said. “Maybe it buys you time to sort out how to deal with those costs.”
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