IBORkorotusten

IBORkorotusten refers to the reduction or elimination of interest rates benchmarked against Interbank Offered Rates (IBORs). IBORs have been the primary reference rates for a vast array of financial contracts globally, including loans, derivatives, and securities. However, concerns about their reliability and susceptibility to manipulation led to a global transition away from these benchmarks. IBORkorotusten, therefore, signifies the process of replacing IBORs with alternative reference rates (ARRs) that are based on actual transaction data and are considered more robust. This transition involves repricing existing IBOR-linked contracts and updating market conventions for new issuances. The shift aims to enhance the stability and transparency of the global financial system. It has been a complex undertaking, requiring significant coordination between regulators, financial institutions, and market participants to ensure a smooth transition and mitigate potential risks. The discontinuation of most major IBORs has already occurred or is scheduled for the near future, marking a significant milestone in financial market reform.