This week, we revise our LIBOR deadline from 12/31/21 to 3Q20. (Well, technically, that was the FCA…and just for Stg LIBOR.) We review the secondary trading market in October (and hint toward November) and recap the latest on ESG and ratings. Finally, we remind you that we are now offering members a weekly LIBOR Q&A […]
Readers may be forgiven for having thought that the deadline to switch away from LIBOR was December 31, 2021. In fact, for some jurisdictions, it is more than a year earlier.
This week we recap our latest LIBOR webcast, tell you about our new weekly LIBOR Q&A call, recap this week’s visit to Tel Aviv, and kindly remind you to treat Thanksgiving as a loan market holiday. Hope you have a crazy pre-Thanksgiving weekend.
On Thursday, some 600 members attended the LSTA’s “The End of LIBOR: The Big Picture” webcast, a reference presentation intended help folks quickly come up to speed on i) Why LIBOR is ending, ii) what is the anticipated replacement rate (SOFR), what are its variants and how do they behave, iii) status and key steps for replacing LIBOR loans with SOFR loans and iv) key resources. Our next LIBOR webcast – “Demystifying the LSTA’s SOFR Concept Credit Agreement” – will take place on December 3rd.
The End of LIBOR: Understanding the Big Picture Webcast Replay. The replay will be available until November 15, 2020.
LIBOR is very likely to end shortly after the end of 2021. But why is it ending, what will replace it…and what should loan market participants do to prepare? The End of LIBOR: Understanding the Big Picture Presentation presented on Thursday, November 14, 2019 by Meredith Coffey, LSTA EVP – Research and Public Policy; Alternative […]
The LSTA is very engaged in LIBOR transition, including participating in the Alternative Reference Rates Committee (ARRC), co-chairing the ARRC Business Loans Working Group and its Operations Sub-Group. We also are committed to keeping our members updated on LIBOR transition and believe the LSTA LIBOR Migration Magazine is a helpful tool to do so.
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. […]
This week, we start off in the markets discussing trade volumes (sitting around $53 billion in September) and trade prices (despite recent coverage, median trade prices were still slightly above 99). We then move to LIBOR. Everyone knows LIBOR is going away – but how do we make SOFR, the likely replacement rate, work for […]
At this point, most lenders know that LIBOR is likely to cease shortly after the end of 2021 and the Secured Overnight Funding Rate (“SOFR”) is very likely to be the replacement rate for syndicated loans and CLOs. While we know that, a major question remains.
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