{"id":3318,"date":"2020-12-02T13:31:00","date_gmt":"2020-12-02T13:31:00","guid":{"rendered":"https:\/\/expleo.com\/global\/en\/?post_type=insight&#038;p=3318"},"modified":"2024-03-19T17:12:01","modified_gmt":"2024-03-19T17:12:01","slug":"libor-alternative-risk-free-rates-arfrs-demystified","status":"publish","type":"insights","link":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/","title":{"rendered":"LIBOR &#8211; Alternative risk-free rates (ARFRs), Demystified"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3318\" class=\"elementor elementor-3318\" data-elementor-post-type=\"insights\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8c9eafd gg-article-content gg-standard-article-template gg-simple-text gg-container-small-pt-72 gg-pb-72 gg-print-pb-null elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8c9eafd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e4513a9 gg-tablet-view\" data-id=\"e4513a9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fabfd94 gg-font-v4 gg-custom-dark-purple-color elementor-widget elementor-widget-heading\" data-id=\"fabfd94\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Alternative risk-free rates (ARFRs), Demystified<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc2361f gg-font-v9 gg-class-for-iphone8  elementor-widget elementor-widget-text-editor\" data-id=\"bc2361f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>LIBOR (London Inter Bank Overnight Rate) is used by banks across the globe to reference the floating rates of cash and derivative products. But the methodology used to set LIBOR is flawed and caused a major scandal a decade ago. With interbank lending also in decline, increasing liquidity risks, regional regulators have selected alternate risk-free reference rates (RFRs) to replace LIBOR. UK regulators have advised financial institutions to move away from the use of Sterling LIBOR by the end of 2021, to use the Sterling Overnight Index Average (SONIA) RFR.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-859e4cd gg-display-none-print elementor-widget elementor-widget-image\" data-id=\"859e4cd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"480\" height=\"270\" src=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg\" class=\"attachment-full size-full wp-image-3338\" alt=\"Person marking graph with a pen.\" srcset=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg 480w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1-300x169.jpg 300w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-75d56d7 gg-font-v9 gg-class-for-iphone8  elementor-widget elementor-widget-text-editor\" data-id=\"75d56d7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The transition is not straightforward: LIBOR is quoted across several tenors, while SONIA is only published as an overnight rate; and LIBOR incorporates a credit risk spread, but SONIA does not. Expleo has developed extensive expertise in the use of the complex calculation methodologies required to complete the transition into an adjusted form of SONIA. This white paper outlines why banks should work with an experienced partner like Expleo, to ensure the most cost-effective, successful transition, with all associated impacts and risks identified, tested and managed appropriately.<\/p><p>Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1568733 elementor-widget elementor-widget-button\" data-id=\"1568733\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2023\/03\/libor-white-paper-final-1.pdf\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">DOWNLOAD THE WHITEPAPER<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA.<\/p>\n","protected":false},"author":67,"featured_media":3338,"parent":0,"template":"","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_angie_page":false,"footnotes":""},"topic":[164,154,151],"insights-single-templates":[18,316],"industry-taxonomy":[38],"content-type":[24],"country":[141],"service":[216,54,208,55,60],"class_list":["post-3318","insights","type-insights","status-publish","has-post-thumbnail","hentry","topic-artificial-intelligence-and-robotics","topic-compliance-and-regulation","topic-quality-assurance-and-software-development","insights-single-templates-download-article","insights-single-templates-old-template","industry-taxonomy-banking-and-financial-services","content-type-whitepapers","country-global","service-digital-transformation","service-software-quality-assurance","service-quality-testing","service-regulatory-compliance-management-for-manufacturing","service-tech-enabled-business-processes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Expleo | LIBOR - Alternative risk-free rates, Demystified<\/title>\n<meta name=\"description\" content=\"Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA. Discover more about it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LIBOR - Alternative risk-free rates (ARFRs), Demystified\" \/>\n<meta property=\"og:description\" content=\"Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA. Discover more about it.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/\" \/>\n<meta property=\"og:site_name\" content=\"Global EN\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-19T17:12:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"480\" \/>\n\t<meta property=\"og:image:height\" content=\"270\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/\",\"url\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/\",\"name\":\"Expleo | LIBOR - Alternative risk-free rates, Demystified\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg\",\"datePublished\":\"2020-12-02T13:31:00+00:00\",\"dateModified\":\"2024-03-19T17:12:01+00:00\",\"description\":\"Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA. Discover more about it.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/#primaryimage\",\"url\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg\",\"contentUrl\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg\",\"width\":480,\"height\":270,\"caption\":\"Person marking graph with a pen.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/whitepapers\\\/libor-alternative-risk-free-rates-arfrs-demystified\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Insights\",\"item\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/insights\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"LIBOR &#8211; Alternative risk-free rates (ARFRs), Demystified\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/\",\"name\":\"Expleo | EN\",\"description\":\"Expleo\",\"publisher\":{\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/#organization\",\"name\":\"Expleo | EN\",\"url\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/wp-content\\\/uploads\\\/2019\\\/02\\\/expleo-logo-and-tagline.png\",\"contentUrl\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/wp-content\\\/uploads\\\/2019\\\/02\\\/expleo-logo-and-tagline.png\",\"width\":1600,\"height\":774,\"caption\":\"Expleo | EN\"},\"image\":{\"@id\":\"https:\\\/\\\/expleo.com\\\/global\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Expleo | LIBOR - Alternative risk-free rates, Demystified","description":"Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA. Discover more about it.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/","og_locale":"en_GB","og_type":"article","og_title":"LIBOR - Alternative risk-free rates (ARFRs), Demystified","og_description":"Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA. Discover more about it.","og_url":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/","og_site_name":"Global EN","article_modified_time":"2024-03-19T17:12:01+00:00","og_image":[{"width":480,"height":270,"url":"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/","url":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/","name":"Expleo | LIBOR - Alternative risk-free rates, Demystified","isPartOf":{"@id":"https:\/\/expleo.com\/global\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/#primaryimage"},"image":{"@id":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/#primaryimage"},"thumbnailUrl":"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg","datePublished":"2020-12-02T13:31:00+00:00","dateModified":"2024-03-19T17:12:01+00:00","description":"Banks will benefit from using Expleo\u2019s specialist expertise to manage the transition from Sterling LIBOR to SONIA. Discover more about it.","breadcrumb":{"@id":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/#primaryimage","url":"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg","contentUrl":"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/insights-libor-alternative-risk-free-rates-arfrs-demysti\ufb01ed-index-480x270-1.jpg","width":480,"height":270,"caption":"Person marking graph with a pen."},{"@type":"BreadcrumbList","@id":"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/libor-alternative-risk-free-rates-arfrs-demystified\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/expleo.com\/global\/en\/"},{"@type":"ListItem","position":2,"name":"Insights","item":"https:\/\/expleo.com\/global\/en\/insights\/"},{"@type":"ListItem","position":3,"name":"LIBOR &#8211; Alternative risk-free rates (ARFRs), Demystified"}]},{"@type":"WebSite","@id":"https:\/\/expleo.com\/global\/en\/#website","url":"https:\/\/expleo.com\/global\/en\/","name":"Expleo | EN","description":"Expleo","publisher":{"@id":"https:\/\/expleo.com\/global\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/expleo.com\/global\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/expleo.com\/global\/en\/#organization","name":"Expleo | EN","url":"https:\/\/expleo.com\/global\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/expleo.com\/global\/en\/#\/schema\/logo\/image\/","url":"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2019\/02\/expleo-logo-and-tagline.png","contentUrl":"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2019\/02\/expleo-logo-and-tagline.png","width":1600,"height":774,"caption":"Expleo | EN"},"image":{"@id":"https:\/\/expleo.com\/global\/en\/#\/schema\/logo\/image\/"}}]}},"hreflang":{"rendered":"","structure":[]},"_links":{"self":[{"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/insights\/3318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/insights"}],"about":[{"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/types\/insights"}],"author":[{"embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/users\/67"}],"version-history":[{"count":0,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/insights\/3318\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/media\/3338"}],"wp:attachment":[{"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/media?parent=3318"}],"wp:term":[{"taxonomy":"topic","embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/topic?post=3318"},{"taxonomy":"insights-single-templates","embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/insights-single-templates?post=3318"},{"taxonomy":"industry-taxonomy","embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/industry-taxonomy?post=3318"},{"taxonomy":"content-type","embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/content-type?post=3318"},{"taxonomy":"country","embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/country?post=3318"},{"taxonomy":"service","embeddable":true,"href":"https:\/\/expleo.com\/global\/en\/wp-json\/wp\/v2\/service?post=3318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}