IBOR Reform

All topics related to IFRS Standards.
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hubertd
Posts: 144
Joined: 21 Jul 2020, 23:48

IBOR Reform

Post by hubertd »

I'm a bit confused by the Phase 2 amendments.

If a derivative is replaced by a new derivative due to benchmark reform and the terms of the new derivative are not substantially modified, do I need to terminate and de-designate the existing hedge relationship (with a original derivative) or can I continue it and only need to amend the hedge documentation?
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: IBOR Reform

Post by Leo »

Have you got your answer?

Could you share it with us please?

Thanks you !
hubertd
Posts: 144
Joined: 21 Jul 2020, 23:48

Re: IBOR Reform

Post by hubertd »

I haven’t got any replies , neither here nor anywhere else but I think it’s covered by Phase 2 of IBOR reform expedients and only hedge documentation would need to be amended.
DJP
Trusted Expert
Posts: 345
Joined: 26 Jun 2020, 15:57

Re: IBOR Reform

Post by DJP »

Yes, you can continue the original hedge relationship if indeed the derivative has been replaced just because of the interest rate benchmark change
Wynand Brits
Posts: 22
Joined: 08 Jan 2020, 13:49

Re: IBOR Reform

Post by Wynand Brits »

Any practical examples on IBOR reform phase 2?
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