NEW YORK, Sept. 24, 2020 /PRNewswire/ -- Riverside Risk Advisors ("Riverside") announced the launch of LiborXchange, a strategic partnership between Riverside, Scissero Ltd., and Hedge Trackers LLC to help clients through the imminent LIBOR transition. LIBOR is widely expected to become irrelevant after December 31, 2021, and there are trillions of dollars of LIBOR-based financial instruments, including loans and derivatives that create potentially material capital market exposures that need to be addressed. Borrowers, banks and alternative lenders all face the daunting task of systematically reviewing each and every loan and financial instrument in their portfolio to determine the appropriate course of action. With a large number of U.S. credit agreements stipulating a fallback to Base Rate (i.e., Prime Rate), borrowers will be faced with a shock of a 200 to 300 basis point increase in interest costs until their legal agreements are amended– not a seamless process.
"The risk of complacency is high, and it's going to get higher," according to Tom Wipf, vice chairman of institutional securities at Morgan Stanley and chair of the Alternative Reference Rates Committee (ARRC)." Delays could mean your firm could be crowded out when it needs to have LIBOR conversations with clients and counterparties," Wipf told CFO Dive.
LiborXchange takes a holistic approach to assisting clients through the transition. We utilize our deep experience in global capital markets together with a first-class data extraction, document automation and workflow system, quantitative analysis, risk management, and legal resources, if a client needs them, to ensure an efficient and transparent transition.
"To successfully sail through the transition, there is an enormous amount of heavy lifting to be done. Partnering with a team that brings the right combination of financial, technological, and legal expertise to the table is key to achieving success," said Joyce Frost, Co-Founder and Partner at Riverside. "With LiborXchange, we bring a practical approach, informed resources and an interdisciplinary skill set to help our clients through this process."
According to Mathias Strasser, CEO of Scissero, "the successful implementation of large-scale regulatory projects, such as the LIBOR transition, increasingly requires technology experts, lawyers and capital markets specialists to seamlessly work side-by-side. We are excited to partner with Riverside and Hedge Trackers, who share our vision for a multi-disciplinary approach to offer clients a one-stop-shop solution."
Learn more and visit us: www.liborxchange.com
About Riverside Risk Advisors: An independent derivatives advisory firm located in New York City. Riverside advises clients on hedging interest rates, currency, convertible bonds, and commodity market risk. Formed in 2009, its clients include private equity, project finance and infrastructure, real estate, corporate, and specialty finance. Riverside is a member of ISDA, the LSTA and is a Swap Advisor regulated by the National Futures Association. Partner, Joyce Frost, sits on the ARRC's Business Loan Working Group Committee.
About Scissero: A document automation specialist based in London and New York with deep experience in data extraction and integrated legal and paralegal support services. Scissero forms part of the WallStreetDocs group, which was formed in 2009, and provides document-centric automation solutions for the world's largest investment banks.
About Hedge Trackers: Based in Silicon Valley, Hedge Trackers is a premier provider of consulting, outsourced derivative accounting, supporting technology and training services for firms that need to plan, execute or maintain a foreign currency, interest rate or commodity hedging program.
SOURCE Riverside Risk Advisors
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