On October 1st the LSTA took the next step in its efforts to educate market participants on replacement benchmarks by distributing a draft “concept credit agreement” referencing a compounded average of daily SOFRs calculated in arrears (“Compounded SOFR in Arrears”).
Your search: libor
This week, we start by discussing the bifurcating secondary market. (Hint: See the BB par-plus market share!) We then move to SOFR land, flagging both new tools (Averages! Indices! Simple Equations!) and proposed tax relief. Finally, we note that you might have seem some unfair allegations about loans and CLOs. Well, we just published a […]
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.
The Treasury Department and the Internal Revenue Service issued proposed regulations on Tuesday to relieve loan market participants of the tax burdens associated with LIBOR transition.
This week, we start off by briefly reviewing the US leveraged loan market to date in 2019. We then turn to LIBOR and SOFR, and flag (spread adjustment) progress being made (really!). Finally, we shift to the intersection of the courts and DC to discuss why Volcker and litigation might limit banks’ ability to invest in […]
Blacklined against a LIBOR-based investment grade term loan.
So now everyone knows what SOFR (and Treasury repo) is!
This week, we start off discussing the future – or lack thereof – of LIBOR in NYC (with the FRBNY) and Miami (through ABS East). We turn to markets, cataloguing the slowing secondary in August (and July, and June…) and explain why. We – and our friends – continue to defend loans; we share yet […]
“Some say only two things in life are guaranteed: death and taxes. But I say there are actually three: death, taxes, and the end of LIBOR.” – John Williams, President Federal Reserve Bank of New York, September 23, 2019.
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.