Swiss perspective on IBOR Transition
IBOR-Reform
18. February 2019

Swiss perspective on IBOR Transition

On Monday, February 11th 2019 Christian Behm joined the flagship event hosted by the Swiss Risk Association “LIBOR –Past, Present And Future”.

We would like to emphasize following aspects of this highly valuable event:

  • SNB identified LIBOR shortcomings early and developed a vision and a SARON roadmap already in 2009 (long before the IOSCO principles were published)
  • The character of the RFR differs significantly compared to IBORs, which results in implications on banks steering
  • Backward-looking term rates are feasible and come with certain benefits compared to OIS derived term rates (e.g. lower volatility; forwards are a poor indicator of future rates)
  • Harmonization across currencies is desired due to cross-currency markets
  • From a Swiss perspective it is rather surprising to observe Eurozone stakeholders believing (or supporting) in a long term surviving Euribor
  • The FINMA Dear CEO Letter helped to increase necessary awareness and serves as a catalyst for necessary preparation in organizations
  • Proposed EONIA-ESTER transition path could also serve as an example for the transition away from LIBORs

Thanks to SRA and the other speakers Martin M. Bardenhewer, Jean-Noël Ardouin, Serena Fioravanti and Andreas Bitz for sharing their valuable insights.

Christian Behm
The author
Christian Behm

Christian Behm, CFA, is with LPA since 2004. He has broad experience in advising banks and has got a distinct capital markets focus. As Partner he is responsible for LPA’s Risk & Quant Consulting Practice and he covers large consulting mandates.

Christian Behm
Christian Behm
Your partner for
Risk & Quant Consulting

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Christian Behm
Christian Behm
Your partner for
Risk & Quant Consulting

Contact form



Christian Behm
Christian Behm
Your partner for
Risk & Quant Consulting
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