June 20, 2018 - As recent missives have suggested, considerable work on potential LIBOR succession is taking place. Helpfully, these efforts increasingly are being unveiled for public consumption. First, the Bank of England recently published a provisional timeline for SONIA, the Sterling Reference Rate. The timeline indicates there will be efforts to develop a term SONIA, which might be similar to term SOFR in the U.S. This is important because cash products like loans and securities need a term reference rate.

In addition, the U.S. Alternative Reference Rates Committee (“ARRC”) announced a public roundtable that will be held on Thursday, July 19, 2018. The roundtable will recap overall progress thus far in 2018, and will be a starting point in the ARRC’s public consultation and education regarding contract fallback language (i.e., how financial contracts should document a transition to a new reference rate if LIBOR were discontinued). In addition to a higher level perspective on ARRC work, the roundtable will drill into developments in contract language for FRNs, corporate loans, securitizations and derivatives.

The LSTA is a member of the U.S. Alternative Reference Rates Committee and co-chairs the ARRC business loans and CLOs committee. We are developing reference materials on our website (www.lsta.org), FAQs.   If we all work toward this, the transition can be done.

Become a Member

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.

View Current Members

Our Partners

cusip-global-services-vector-logo.svgFitch Group logoRefinitiv-(March-2019)SP-Global-Market-Intelligence
Total Results: 

Search Results by Relevancy

LSTA Newsletter: May 29, 2020

This week in the LSTA Newsletter… Lee Shaiman announces the LSTA’s new 2020 “Tuesday Talks” Virtual Conference Webinar Series. Meredith Coffey analyzes the ARRC’s 2020 Best…