LIBOR Loans Prove Problematic for Legal AI Claira Announces Next-Gen Fully Pre-Trained Solution to Jumpstart Loan Remediation
Aug. 11th, 2020
Brittany Phillips, Claira Media Relations
As the LIBOR deadline fast approaches, bilateral, private documents prove problematic for most legal AI platforms – requiring clients long lead-times to train for accuracy. Claira’s next-gen AI is fully pre-trained for LIBOR remediation across all private & public doc types.
NEW YORK (PRWEB) AUGUST 11, 2020
Claira LLC (http://www.claira.io), creator of the industry’s leading financial contract understanding technology platform, is excited to announce an important breakthrough for its market-leading LIBOR transition solution — Claira’s proprietary IBOR solution provides a drag, drop and go experience with no document training or setup necessary. Claira jumpstarts IBOR remediation for loan market participants and advisory/consulting service providers with bilateral, non-public documents that prove problematic for most other legal AI platforms requiring long lead-times to train their NLP (Natural Language Processing) models. Visit http://www.claira.io/libor-remediation for more information on Claira’s LIBOR Transition Insight Solution.
Claira’s research estimates more than 40% of financial agreements have inadequate IBOR cessation language and will require remediation. Firms with bilateral, private contracts will need adequate time for client outreach, negotiation, amendment, and/or re-papering. The Bank of England, Financial Conduct Authority (FCA), and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) recommend loan market participants begin amending contractual agreements now for LIBOR. This is a daunting task for lenders, borrowers, and any institution that doesn’t already have a good understanding of their LIBOR contractual risks and/or cessation protocols.
Given the bespoke nature of negotiated private documents, most legal AI platforms fail to achieve the accuracy necessary for IBOR remediation without significant manual effort. Claira’s unique, next-generation AI is fully pre-trained for IBOR remediation across private and public document types. Loan market participants and advisory/consulting service providers are turning to Claira to jumpstart their IBOR remediation efforts. Claira offers a fully secure, web-based platform or lightweight on-premise installation to provide firms the ability to simply drag and drop their agreements for immediate insights necessary to accelerate them straight to client outreach, negotiation, amendment, and/or re-papering.
Claira’s proprietary IBOR remediation solution is fully pre-trained to understand financial contracts — public or private — with no setup time required for immediate, deep insight into the full impact of transition as well as IBOR cessation protocols. Claira instantly and automatically categorizes IBOR fallbacks buried deep in private, bilateral agreements such as credit agreements, loans, prospectuses, bond indentures, ISDAs/CSAs, and other financial document types.
With each fallback having a potentially material impact on portfolio/balance sheet risk and valuation, full LIBOR remediation involves more than just identifying the fallback. Claira provides the fallback rate and transactional exposures sized to a client’s portfolio and/or balance sheet — automatically quantifying the risk and valuation impact of LIBOR transition. For more information on Claira’s technology, visit http://www.claira.io/technology.
“Commercial lenders and borrowers have a tough task ahead of them” notes Eric Chang, co-founder of Claira. “Each contract is private, bespoke, bilateral, and often heavily negotiated. Assessing and amending relevant documents is difficult for most AI solutions on the market today because they rely on pattern-matching and require substantial document training across a large corpus of similar agreements – not possible for bilateral, private contracts” says Eric. “Claira’s AI is next-generation data science and comes fully pre-trained to immediately assist with IBOR transition impact and cessation protocols across both public and bespoke private documents.”
With the LIBOR deadline fast approaching, Claira accelerates the transition process. Claira’s LIBOR Transition Insight solution enables clients to either fully digitize their remediation efforts or works in support of manual remediation teams as a parallel or shadow process for additional measures of quality control, while also providing:
Deeper Insights – Enabling more actionable results
Greater Accuracy – Yielding highest confidence in recommendations
Full Transparency – Providing traceability in decision making
Pre-trained Results – Saving significant time and effort
Claira scales across any number or type of documents to provide remediation for LIBOR and dozens of other actionable insights based on Claira’s full comprehension of contract legal language. Claira is ready to assist clients directly and/or partner with firms (law, consultancy, advisory, etc.) to service their clients by way of white-labeled deployment options.
Broad Impact of LIBOR and Transition
The London Interbank Offered Rate (LIBOR) is embedded in nearly every financial service firms' operating models. Transitioning to alternative rates will affect how contracts are priced and how risk is managed. Claira’s enhanced LIBOR Transition Insights provide clients the fallback rate and transactional exposures sized to their portfolio — automatically quantifying the risk and valuation impact of LIBOR transition. Additionally, Claira identifies the governing body denoted to set the benchmark rate going forward across diverse portfolios or balance sheets consisting of hundreds of different financial instrument types. Using Claira, firms obtain the necessary details to immediately quantify the risk and valuation impact of LIBOR transition — accelerating any client’s LIBOR transition from planning to execution!
For more information on Claira’s LIBOR transition solution, visit http://www.claira.io/libor-remediation.
Claira LLC (http://www.claira.io) is a leading next-gen AI company specializing in legal contract understanding. Built using advanced data science to reveal the underlying logic trapped in financial contracts, Claira is pre-trained to comprehend legal language — providing faster, deeper, and more actionable results with full transparency and traceability in its decision making. No document training, setup, or installation required. Claira can be accessed from any web browser or locally installed in a client’s data center. Claira scales across any number or type of documents to provide remediation for LIBOR and dozens of other actionable insights. Claira is ready to assist clients directly and/or partner with firms (law, consultancy, advisory, etc.) to service their clients by way of white-labeled deployment options.
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