LIBOR and SOFR Transition

Contact a Fifth Third advisor to learn more about LIBOR interest rates:

Keeping you in the know

LIBOR is being phased out as the lending rate benchmark for banks worldwide. During this transition period, we want to keep you informed of the latest developments. On this page, you’ll find news, information and articles to help you stay up to date. This information will be periodically updated as information becomes available. This information is current as of January 6, 2021.

About LIBOR

LIBOR is a widely used interest rate benchmark that comes in various currencies and tenors. It has been in active use for decades and has been used to price both cash and derivative products. Its estimated footprint is almost $200 trillion across financial markets. See ARRC Interim Report and Consultation here.

LIBOR rates are calculated daily by ICE Benchmark Administration (IBA) and are based upon the cost of borrowing in wholesale, unsecured funding markets. Every London banking day, LIBOR contributor banks submit their cost of borrowing in these markets. They base their submissions using a standardized methodology, which relies on the price of actual transactions or expert judgment when no transactions are available. The submitted rates are averaged, after trimming upper and lower values. IBA outlines its full calculation methodology here.

USD LIBOR is published daily with overnight, 1-week, 1-month, 2-month, 3-month, 6-month and 12-month tenors.

Why is LIBOR being phased out?

There was an announcement by the primary regulator of LIBOR in 2017 that it would not compel panelist banks to submit to the LIBOR panel indefinitely. This underscored a potential end-date for LIBOR, initially targeted for end-2021.

More recent announcements note that there is discussion underway which could extend the life of certain USD LIBOR settings until end-June-2023. On November 30, 2020, IBA announced a consultation in early December 2020 on its intentions to cease publishing 1-week and 2-month USD LIBORs at end-2021 and to cease publishing other USD LIBOR settings (such as overnight, 1-, 3- , 6- and 12-month rates) at end-June-2023.

Email Us

Corporate.Libor@53.com

Contact us for more information on LIBOR.

Webinars

The SOFR Evolution

The transition from LIBOR to SOFR or other rate is expected to be one of the most significant events in the history of financial markets and will go into effect January 1, 2022, per guidance from the Federal Reserve. View this Fifth Third webinar for relevant information on the current environment surrounding this change, and what you can expect in the progression away from LIBOR.

If you’d like additional information, email us at LIBORTransitionSupport@53.com.

(September 2021)

Next Steps: Making the Transition.

The transition from LIBOR to SOFR will be one of the biggest events in the history of financial markets. To help you and your business get ready, view this Fifth Third webinar.

If you’d like additional information, email us at LIBORTransitionSupport@53.com.

(March 2021)

LIBOR to SOFR: What to expect. How to prepare.

The transition from LIBOR to SOFR will be one of the biggest events in the history of financial markets. To help you and your business get ready, view this Fifth Third webinar.

(December 2020)

LIBOR to SOFR: The Road Ahead

The transition from LIBOR to SOFR will be one of the biggest events in the history of financial markets. To help you and your business get ready, view this Fifth Third webinar.

(October 2020)

This content is for informational purposes only and may have been derived, with permission, from a third party. While we believe it to be accurate as of the date of publication, it does not constitute the rendering of legal, accounting, tax, or investment advice or other professional services by Fifth Third Bank, National Association or any of its subsidiaries or affiliates, and it is being provided without any warranty whatsoever. Please consult with appropriate professionals related to your individual circumstances.

LIBOR FAQs

Get answers to commonly asked LIBOR questions

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