By Neil Roland ( March 10, 2020, 20:07 GMT | Insight) -- US corporations’ transition from Libor has been retarded by their hesitation to issue bonds linked to the official alternative, a JPMorgan Securities managing director said. Alex Roever, a research strategy chief at the firm, said companies have told him their systems are geared to the kind of interest rates used in the Libor benchmark, not in the Secured Overnight Financing Rate substitute. “Many lenders and corporates are struggling to implement SOFR on their existing systems and may not be able to get that done by the end of 2021,” the official deadline for Libor’s cessation, he said.US corporations’ transition from Libor has been retarded by their hesitation to issue bonds linked to the official alternative, a JPMorgan Securities managing director said....
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