Thursday, 29 November 2018

Course "The future of LIBOR: Quantitative perspective on benchmarks, overnight, fallback and regulation"


Following the request by several clients, we have developed a training/workshop around the new benchmarks and the LIBOR fallback. A typical agenda of the course is presented below.

  • Cash-collateral discounting. 
    • The standard collateral results and their exact application. 
    • What is hidden behind OIS discounting (and when it cannot be used)?
    • Impact of new benchmarks on valuation
  • EU Benchmark regulation
  • The``alternative'' benchmarks:
    • Progress in different jurisdictions
    • SOFR, reformed SONIA, ESTER, SARON, TONAR.
    • Secured v unsecured choice.
    • What about term rates?
    • Curve calibration
    • SOFR and EFFR: two overnight rates in one currency!
  • Status in different currencies. Cleared OTC products, liquidity. The different consultations in progress and what to expect from them.
  • Fallback options
    • ISDA consultation
    • The different options for the "adjusted rate"
    • The different options for the "adjustment spread"
    • Quantitative impacts: convexity adjustments and risk
    • Clearing house adoption
  • Risk management of transition.
    • Risk impacts
    • Potential impacts on systems
    • What a risk solution would look like?
    • Multi-curve: double or quit?
    • Interest rate modelling
  • New products associated to new benchmarks
    • Futures on overnight benchmarks
    • Deliverable swap futures
Detailed lecture notes for participants.

The training is usually proposed as a one-day program.



Don't fallback, step forward!

Contact us for our LIBOR fallback training and quant solutions.



Other course proposal available on our Training Page.