Last July, Andrew Bailey, Chief Executive of the UK based Financial Conduct Authority, made a now famous speech where he signaled the potential cessation of LIBOR as early as the end of 2021. While it is not completely clear at this time that the continued quoting of LIBOR as a benchmark rate will actually end or be significantly curtailed we must prepare for that eventuality.
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This week we cover LIBOR-OIS and You, Ops-olution!, February Trading, Token Sales and DOL’s Fiduciary Rule
LIBOR – and the LIBOR-OIS spread – has been rising rapidly in recent months. What does this mean for the loan market – and for the “End-of-LIBOR” debate?
This week the LSTA hosted its annual legal conference in London jointly with the LMA. After a record number of conference attendees were formally welcomed in addresses delivered by the LSTA’s Executive Director Lee Shaiman and the LMA’s Managing Director Nigel Houghton, global economist, Trevor Williams set the scene for the day’s discussions by giving an overview of economic trends and noted that, although the global economy continues to grow, the UK might be underperforming in this growth trend.
This week we cover Guidance on the Guidance, February’s Market and ARRC, LIBOR & LSTA
In January, demand was very strong, repricings surged and terms and conditions weakened substantially. While not fun, in February, it gets better: Amid a backdrop of equity market volatility. demand only slightly outpaced supply. Of course, a slight imbalance still is an imbalance, and terms still trended in borrowers’ favor. Below, we recap the highlights and link to deeper dives.
While the ARRC was quiet over year-end, it has gotten a lot livelier during the past fortnight. Below we offer some background on LIBOR and then bring members up to date on recent ARRC efforts. Importantly, we note the LSTA has become a member of the ARRC when it was recently broadened to add cash market players.
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.