As of January 7, 2020, there are 724 days until the potential end of LIBOR. Will the syndicated loan market be ready?
The syndicated loan market would really like an IOSCO-compliant Forward Looking Term SOFR to develop. If such a rate developed, it would solve several problems inherent in SOFR.
SOFR tools are coming! On November 4th, the FRBNY released a request for public comment on an official “SOFR Compound Average” and a “SOFR Index”. Below, we describe these tools, their use cases and several questions from the consultation. The LSTA is considering responding.
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 know whereof we speak; the LSTA is a member of the overall Alternative References Rates Committee (“ARRC”), the body tasked with replacing U.S. dollar LIBOR. […]
We’d be the first to acknowledge that transitioning from LIBOR to SOFR is hard. But LIBOR will end and we must prepare. Recognizing that, the September 5, 2019 Alternative Reference Rate Committee (“ARRC”) minutes introduced two tools to help ease the transition.
So now everyone knows what SOFR (and Treasury repo) is!
This week we cover MTM Monthly; LIBOR Fallbacks; PDC Prepping; TOU; FedSpeak; Systemic Risks
On April 25, 2019, the Alternative Reference Rates Committee (“ARRC”) released its recommended LIBOR fallback language for syndicated loans and floating rate notes. While the ARRC also published a very helpful narrative explaining how the legal language in the fallbacks worked, sometimes it is easier to understand complicated legal language by talking to the experts.
Leaving LIBOR: ARRC Recommendations for Syndicated Loan Fallback Language presented by Meredith Coffey of LSTA, Jeffrey Nagle, Partner of Cadwalader, Wickersham & Taft LLP and Tess Virmani of LSTA.
Leaving LIBOR: ARRC Recommendations for Syndicated Loan Fallback Language Webcast Replay. Replay available until May 9, 2020
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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.