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-Fitch Rtgs: US Financials See Rising Risk from Cash Products Amid Libor Sunset

Feb 14, 2020 - ENP Newswire

The transition from U.S. dollar (USD) London Interbank Offered Rate (Libor) to its likely replacement, the Secured Overnight Funding Rate (SOFR), presents heightened risks for U.S. financial institutions (FIs), Fitch Ratings says.

Banks may face greater legal, operational and reputational challenges from cash products, which have lagged derivatives in moving away from Libor. Rating changes are not anticipated over the near term. However, failure to plan accordingly and manage the in...