(L)IBOR Transition – Valuation and risk management considerations

Pricing and risk models need to be adjusted to the Alternative Reference Rates (ARR). Entities will encounter several challenges in this process, the most critical being the lack of historical time series data, and absence of term structures and embedded credit risk components. The asymmetries between the benchmarks may ultimately lead to an increase of … More (L)IBOR Transition – Valuation and risk management considerations

What companies in the FinTech, blockchain and cryptocurrency space need to know about the new Swiss FinTech license

Switzerland’s Financial Market Supervisory Authority (FINMA), annouced new “relaxed” requirements that are applicable to innovative financial companies, such as companies in the blockchain and cryptocurrency space. Authors: Darko Stefanoski, Orkan Sahin

(L)IBOR Transition – Is there a Swiss Average Rate Overnight (SARON) market at the moment?

Moving to a new Alternative Reference Rate (ARR) requires market liquidity, new legal contract terms and general acceptance of the new state of affairs in the relevant market from buy- and sell- side firms. Therefore, it is likely that all current Interbank Offered Rates (IBOR) will not transition at the same time for all products … More (L)IBOR Transition – Is there a Swiss Average Rate Overnight (SARON) market at the moment?

(L)IBOR Transition affecting Companies – three major impact areas

Treasury, Tax and Legal as well as Technology are the main impact areas where Alternative Reference Rates (ARRs), foreseen to replace Interbank Offered Rates (IBORs) soon, could create hiccups for Corporates. Thus, understanding the relevant transition challenges is key for a successful IBOR transition of any affected Swiss-based company. Author: Patrick Arcon