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