July 21, 2021 - The Loan Syndications and Trading Association (“LSTA”), the trade association for the corporate loan market in the United States, today issued the following statement regarding the announced decision today by the Federal Reserve’s Alternative Reference Rates Committee (“ARRC”) that business loans and Collateralized Loan Obligations (“CLOs”) are in scope for use of Term SOFR.

“The LSTA applauds the ARRC for supporting the use of Term SOFR for business loans, their end-user hedges, and CLOs that invest in Term SOFR loans. The ARRC’s recommendation will facilitate the transition from LIBOR and will dramatically ease the operational burden of using SOFR in loans and CLOs. We hope that with this important step, market participants now feel fully equipped to adopt replacement rates in the near term.”

###

Media Contact:
Profile for the LSTA:
Rich Myers
rmyers@profileadvisors.com
Phone: 347-774-1125

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

CUSIPFitch Group logoMorningstarRefinitiv-(March-2019)
Total Results: 

Sort by:

Good Friday…no SOFR?

Earlier this month the New York Fed announced that there will be no SOFR rate published on or for Friday, April 7th even though April…

CLOs: No Conflicts…But Big Problems

March 30, 2023 - On Monday, the LSTA submitted the first of three letters responding to the SEC’s Proposed Rule on “Conflicts of Interest in…

Recent Sustainable Lending Updates: Part 3

Recently the APLMA, LMA and LSTA published updated versions of the Green Loan Principles, Social Loan Principles, Sustainability-Linked Principles and related Guidance. The final versions…