FHLB Des Moines to Gather LIBOR-Linked Collateral Information

last updated on Monday, December 23, 2019 in Business News

The financial markets are proactively preparing for the phase-out of LIBOR by the end 2021.

As part of our LIBOR transition plan, we are identifying the amount of LIBOR-linked collateral members have maturing past December 31, 2021 using the regular collateral pledging process.

Beginning on January 1, 2020, members reporting loan collateral will be asked to complete a brief survey prior to submitting a borrowing base certificate (BBC) identifying LIBOR-linked collateral with maturities beyond December 31, 2021. We will also ask members to share their LIBOR transition plans.

We continue to accept LIBOR-linked collateral and while we have no immediate plans to change this practice or eligibility requirements, we plan to evaluate all collateral practices associated with LIBOR-linked collateral to ensure we are prepared for the planned phase-out.

Given the industry transition away from LIBOR and to an alternative reference rate, FHLB Des Moines has implemented a multi-year plan to prepare our own operations for this change. To help your institution navigate the transition process, we have developed a resource page on our website and provided a framework with more information on how to get started.

For questions, contact your Relationship Manager.

  1. Collateral
  2. Credit and Collateral
  3. LIBOR