Press Release: How Corporate Treasury Can Plan For LIBOR Replacement

New GTreasury White Paper Helps Corporate Treasury Plan for LIBOR Replacement

Boston, October 21, 2019 – Corporate treasury organizations need to understand the impacts new Risk-Free Rates (RFR) will have on their businesses as RFRs roll out across the globe over the next two years, replacing LIBOR, says GTreasury. To help companies adjust to the change, GTreasury has published a new white paper, How Corporate Treasury Can Plan for LIBOR Replacement, available at www.gtreasury.com.

“The impacts of replacing LIBOR will be far reaching and not reversable,” says Peter Seward, GTreasury Vice President of Market Development, Risk. “Corporate treasuries won’t be able to control when LIBOR will replace all their affected financial contracts, but they can be prepared to act on the impacts the change will bring about.”

The new white paper outlines actions companies and their treasury management system vendors need to take to smooth the transition. It highlights three major areas where change will require action:

  • Benchmark rate change – Where all financial instruments previously referencing LIBOR will now be governed by “fallback language” at the contract or agreement level,
  • Interest rate valuation curves and market conventions – Where new financial instruments will replace existing LIBOR-based and related financial instruments in the construction of discount curves, and
  • Regulatory reporting – Where regulatory reporting requirements are affected by LIBOR replacement: Hedge accounting (fair value; cash flow), interest rate sensitivity.

Corporate treasury practitioners can find details on how to identify and plan for impacted contracts, trigger events, dependencies, and system enhancements by downloading the white paper under Resources at www.gtreasury.com. To find out more about GTreasury, please visit www.gtreasury.com or email marketing@gtreasury.com.

About GTreasury

GTreasury is a digital TMS platform that gives organizations cloud access to an end-to-end workflow for treasury and risk management.  Its design leverages new technologies to connect treasury’s ecosystem, enabling the seamless flow of data across and beyond the enterprise for new and smarter ways of working.  With GTreasury, organizations can implement any combination of integrated Cash Management, Payments, Financial Instruments, Accounting, Banking, Risk Management, and Hedge Accounting in one SaaS solution.  GTreasury is headquartered in Chicago, with offices in North America, EMEA and APAC.