Background to the survey. A message from the National Association of Corporate Treasurers:
"With the uncertainty in the market related to COVID-19, we understand your priorities may have shifted to preparedness and resiliency planning during this volatile time. Now, more than ever, preparedness planning should consider the recent guidance released by the ARRC providing further clarity to financial institutions affected by the LIBOR transition and how this guidance will further impact Corporates. The ARRC recently shared timing considerations regarding when institutions should be operationally ready for SOFR and stop offering LIBOR based commercial loans by the end of Q1 or Q2 2021. This means that the last time you may be offered a LIBOR based loan could only be a year away. This time frame will drive the need for action and change on your part as an obligor and how and if your systems are or will be ready; need to confirm:
· Are you operationally ready and prepared for this milestone?
· Have you considered how this will impact financial transactions you offer, including intercompany lending, asset securitizations, and supply agreements, for example?
While more concrete milestones provide clarity the market needs, this also highlights the necessary system and operational updates required within your organization, specifically in finance and treasury. This guidance, along with proposed New York State legislation, beckons the need for both financial and corporate institutions to continue a proactive transition approach to ensure risks and challenges are adequately considered. With the potential discontinuation of LIBOR upon us, we feel it is important to understand the readiness of transition efforts not only for financial institutions but also for corporates as well.
KPMG LLP, National Association of Corporate Treasurers and the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness invite you to participate in our LIBOR Transition Corporate Survey to gauge the current state of your LIBOR transition program and overall transition readiness. This survey will enable a holistic view of the LIBOR transition landscape for Corporates and provide meaningful insights for Corporates progressing on their transition journey. Please find the link to the survey for your perusal and completion. The LIBOR Transition Corporate Survey has been developed to cover the following five (5) key areas:
The results of the LIBOR Transition Corporate Survey will be anonymized and shared with all participants in the survey. As such, by participating in this survey, you will be able to gauge the readiness of corporates across the industry, understand how your progress to date compares to that of your peers, understand risks and challenges that you may not have contemplated previously, and identify areas of focus for the next 12 to 18 months of your transition plan.
To have your answers included in the final report, please complete the survey by April 30."
