Ivory Consulting Corporation, a provider of equipment lease and loan software, software customizations and consulting services for the equipment finance industry, is supporting lessors’ transition from LIBOR to another interest rate by making appropriate customizations to SuperTRUMP.

With the need to replace LIBOR by the end of 2021, financing institutions must develop a clear internal program to meet the timelines provided by the Alternative Reference Committee “ARRC.”

Converting from LIBOR to another interest rate such as SOFR or BSBY can lead to changes in how lessors’ price and analyze their transactions – whether using SuperTRUMP or a different lease and loan modeling and pricing application. Using SuperTRUMP, it is possible to switch between different interest rates as well as locking one or both rates when modeling a proposed transaction. For example, lessors can use SuperTRUMP to review a deal priced using LIBOR and the new rate – a “before” and “after” look. As with LIBOR, a feed from corporate treasury of other interest rates can be easily incorporated into SuperTRUMP.

“Upon moving to SOFR, BSBY or another rate, lessors may need to reprice contracts originally priced and booked using LIBOR, which can be challenging due to the different term structures of these rates,” said Edmund Wong, Director of Sales Operations, Ivory Consulting Corporation. “Ivory Consulting is ready to help our SuperTRUMP users and other equipment lessors tackle this transition.”

To learn more about the LIBOR transition, plan to attend the breakout session moderated by Ivory Consulting’s CEO Scott Thacker, “Leaving Behind LIBOR – What’s Next?” at the upcoming ELFA 60th Annual Convention.