October 20, 2021
Real Estate

How Banking’s Upcoming ‘Y2K Event’ Will Impact Real Estate

The foundations of the banking world are monumentally shifting as the London Interbank Offered Rate (LIBOR) is slowly phased out. By 2023, LIBOR, which backs $223 trillion in financial transactions, will cease to exist. Understanding how the rate switch impacts banking, much less real estate, will take years but borrowers and lenders have just a few months to figure it out. 

“The analogy that rings true to me is that this is sort of like a Y2K event,” Derivative Path co-founder and Head of Rates Steve Hawk said. Hawk has been working in interest rate hedging and derivatives for nearly 30 years, founding Derivative Path as a way to outsource capital markets and advisory teams. “[Y2K] was a pretty large exercise to vet systems and code to make sure things remain operational. Trying to account for transitioning off LIBOR is thought about in the same…

Read full article here: www.propmodo.com