Case study: Supporting a US bank with LIBOR transition

A US global systemically important bank (GSIB) came to us to support them in their global LIBOR transition project. This is how we’re working with them ahead of the deadline.

The challenge

The move from Inter-bank Offered Rates (IBORs) to alternative reference rates (ARRs) towards the end of 2021 is one of the biggest challenges facing global financial markets.

This particular bank wanted support from a law firm who specialise in LIBOR transition work ahead of the deadline – which is why they came to us.

Our solution

Firstly, we completed the due diligence for the loan portfolio. This covered approximately 40 jurisdictions outside the US and South America where this global bank conducts its lending business referencing LIBOR.

We then worked with their internal AI team in Mumbai, developing a fully automated due diligence engine for their English language bi-lateral loan documents. We carried out in-depth tech-assisted manual diligence on over 3,000 deals comprising 220,000 pages in 10,000 documents, analysing 36 data points per document in our online product, Relativity.

We also developed a reporting programme using Relativity. This exported the due diligence output of directly into the bank's internal systems and categorised and automatically prioritised transactions for remediation based on their LIBOR exposure.

The outcome

The outcome is that the bank is on course to be compliant with the LIBOR transition ahead of the 2021 deadline.

We're still working with this client and are preparing and executing loan and structured products remediation documentation in EMEA and APAC.

Do you need help with similar LIBOR work? Get in touch to find out how we can help.