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Strategies, Services, Solutions for LIBOR Transition – Operationalized with our 5x5 Framework

The LIBOR Transition Group focuses purely on the LIBOR Transition services and solutions for small and mid-size clients.  The LTG brings unparalleled industry expertise, experience, and artifacts to execute our pragmatic 5x5 framework for the    5 Dimensions of your organization in a 5 Phase Approach.

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   Business:  Products/Customers | Treasury | ALM & Risk

  • Business risk & return analysis from transition and conversion of products, derivatives, agreements, models, frameworks

  • Communication strategy for customers, counterparties, vendors, regulators about new products and conversions

  • New product design, pricing, timeline, hedging, policies

  • Liquidity, Cash, Income/Expense forecasting and monitoring

  • Cost of funds recalibration; hedge ratios of new derivatives

  • Portfolio and ALM risk-limits for scenario analysis with SOFR

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Operations:  Data/Calculations | Workflows | Processes

  • Redesign processes for:

    • Data capture, verification, calculation, usage methods

    • Trade Acquisition, Settlement, Confirmation, Systems

    • Servicing and Payments/Receipts 

    • Collateral valuation processes

  • Provisions to accommodate vendor upgrades of software

  • Redesign processes for new products, models, forecasting 

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   Financial:   Modeling |   Valuation  |  Accounting

  • Evaluate changes to Forecasting, and impacts to Cashflows, Earnings, Expenses

  • Quantify financial exposure and impacts to Balance Sheet

  • Evaluate and Acquire SOFR models; Validate Models  

  • Estimate impacts to Risk; VaR, DFAST, PPNR, CECL, CCAR

  • Evaluate effects of Re-striking; Valuation changes for “spread”

  • Verify Hedge Accounting

  • SOX considerations for valuation certification

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   Technology:  Automation & Digital Transformation

  • Map vendor dependencies to integrate with legacy systems

  • Update systems to capture and process both Legacy and new data, sources, calculations, methodologies, models, products, reporting

  • System code changes to make payments adjustment

  • All integration work
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   Enterprise Functions:  Legal, Risk Governance, Reporting 

  • Digitize all legal documents

  • Use AI technologies to evaluate the “absence, existence, and strength” of Fallbacks

  • Create Taxonomy of documents and Prioritize based on Fallbacks and customer cohorts

  • Evaluate Tax considerations of instrument and derivatives valuation changes, and value transfer monetization

  • Evaluate Tax consideration of unwinding or re-striking

  • Evaluate Regulatory and Reputation Risks

  • Update Policies, Procedures, Controls

  • Update Disclosures and Reporting

 What initiatives are needed for the "5-Dimensions" of the organization


     Education and Assessment

  • Providing senior management education

  • Assessing and documenting key issues, exposures, impacts

  • Identifying and evaluating impacts of transition and conversion for your business, financials, operations, technology, and legal+enterprise functions

  • Analyzing and presenting recommendations for remediation 


 Execute Roadmap, Programs, Initiatives, Technology

  • Bring Artifacts, Templates, Samples, Resources 

  • Program and project leadership and/or management

  • Program execution for Business, Finance, Operations, Technology, Communication, and other Enterprise functions 

 Strategy   |   Roadmap   |   Initiatives Prioritization

  • Create LIBOR Transition and Conversion Roadmap 

  • Create Execution Program of changes and sequencing for business, operations, financials, technology, and organization functions of legal/tax/accounting/reporting

  • Create Transition Program, Conversion Program, establishing communication, management, monitoring and governance

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     Transformation, Testing, Training, Support

  • Enable organization transformation for post-LIBOR eco-system 

  • Operate in parallel with new rate indexes until needed

  • Test products, processes, technology 

  • Provide support, training, post-implementation enhancements

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   Conversion of legacy agreements, contracts, products at machine speed using AI

  • Provide strategy for when and how to convert documents, products, systems

  • Provide communication strategy for customers, counterparties, vendors

  • Accelerate legacy contract remediation by using technology to:

    • segment legacy LIBOR documents by terms/product/customer for complexity and risk

    • “read, index, remediate” legacy LIBOR disclosures/contracts/products at machine pace and scale, directly in systems of record

How we help clients with our services and solutions in a "5-Phase" approach



  3-Key Advantages in working with FIRM Advisors for your LIBOR Transition

  1. We are a boutique advisory firm with a prime focus on LIBOR transition

  • While many large consulting firms are engaged in full “post-covid” process and business model re-design for entire corporations, we are (and have been for the last 3 years) dedicated to LIBOR transition as our business focus.

  • Our expertise is diverse, and specifically aligned with the skill sets required for LIBOR transition, notably risk management, capital markets, derivatives, consumer finance and contracts, including representation on the ARRC committee itself as chair of the securitization sub-committee.

  2.  Our interaction model is technology-intensive

  • Extensive use of digital processing allows for a “socially distanced” work approach, where we may access files remotely and fast track document, transaction, and back-office systems analysis with little recourse required to our clients.

  • This allows client interaction to avoid the minutia of “process” and engage with a strategic and solutions orientation.

  • Our expert services are integrated with an AI technology solution that ensures better, faster, cheaper delivery.

  3. Our business model can switch seamlessly between on-site and off-site process.

  • While we love to see our clients face-to-face, a small engagement team makes zoom/ring conferencing an easy switch.

  • With COVID's second and third “wave” potential, it is imperative that we present an uninterrupted process, where deadlines are not impacted by systemic risk or the global environment.

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