As LIBOR continues to create headlines in a sleepy August market, we wanted to update LSTA members on a number of issues. First, we recap the current state of preparation for a possible LIBOR transition or disruption. Second, we discuss principles for IBOR fallbacks in the derivatives space. Third, in the loan space, we discuss potential stakeholders (and their needs), and, fourth, provide very early thoughts on how credit documentation could reduce any risk of a market disruption if LIBOR were permanently discontinued. Finally, for comparison purposes, we describe the ISDA fallback approach for IBORs.
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.