On Thursday, some 600 members attended the LSTA’s “The End of LIBOR: The Big Picture” webcast, a reference presentation intended help folks quickly come up to speed on i) Why LIBOR is ending, ii) what is the anticipated replacement rate (SOFR), what are its variants and how do they behave, iii) status and key steps for replacing LIBOR loans with SOFR loans and iv) key resources. Our next LIBOR webcast – “Demystifying the LSTA’s SOFR Concept Credit Agreement” – will take place on December 3rd.
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While the majority of sustainable finance activity has been on the equities side, the fixed income markets have also seen the development of green and sustainability linked products. On the loans side, the US loan market saw its first green loans and sustainability linked loans in 2018. To find out more, download this publication.
As we recently reported, the LSTA filed an amicus brief in a federal case coming out of the Millennium bankruptcy which is considering whether broadly syndicated term loans are securities for the purposes of federal and state securities laws. The LSTA argued that they are not and explained the materially negative consequences to borrowers and lenders were a court to reach the opposite conclusion. Recently, the banks completed the briefing in this case by filing a reply brief that reiterated their view that the term loan in that case is not a security.
LIBOR, “the world’s most important number”, is likely to cease after 2021. This presents significant—but hopefully surmountable—challenges. We discuss the LIBOR problem, timeline and potential shorter- and longer-term solutions. We discuss the LIBOR problem, timeline and potential shorter- and longer-term solutions.
Do leveraged loans create systemic risk? Read this FAQ to find out the answer
Are leveraged loans systemically risky? A subcommittee of the House Financial Services Committee held a hearing this week to examine this very issue, one that the LSTA has scrutinized closely and that regulators, reporters and commenters have been mulling over for many months. (A webcast of the hearing is available here and the Committee memorandum is available here). Below, we review the hearing and address the major themes that emerged.
Lawmakers and regulators are continuing their inquiry into whether loans create systemic risk. In recent weeks, senior regulators have explained why they believe leveraged loans do not create systemic risk.
Are broadly syndicated term loans securities for the purposes of federal and state securities laws? That critical question, which has been percolating around the loan market for decades, is the subject of an amicus brief that the LSTA recently filed in a federal district court in New York. The LSTA argues that they are not […]
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.