The Wall Street Journal asks Amol Dhargalkar about the last month of LIBOR
Summary
One month before the end of LIBOR, Amol Dhargalkar discusses the challenges companies are facing with their transition
Amol Dhargalkar in the Wall Street Journal“At the end it’s just like any term paper anybody wrote in college. For the most part, it all gets done right at the last minute.”
“At the end it’s just like any term paper anybody wrote in college,” he said. “For the most part, it all gets done right at the last minute.”
Some companies that have arranged an automatic fallback to SOFR have put off upgrading their IT systems in favor of addressing other priorities such as inflation, Chatham Financial’s Dhargalkar said. For example, their systems may not be set up for a rate that represents a daily weighted average of SOFR over a certain period. “Some have said, ‘Let’s do it later once this all dies down,’” he said. “‘We’ll let it fall back and we’ll deal with that later because we have other priorities.’”
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