LIBOR: The problem…and the solution? LIBOR, “the world’s most important number”, is likely to end sometime in the 2020s. This presents significant – but generally surmountable – challenges. Below, 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...
1 ALTERNATIVE REFERENCE RATES COMMITTEE GUIDING PRINCIPLES ARRC Guiding Principles for More Robust LIBOR Fallback Contract Language in Cash Products The goal of the ARRC is to publish one or more sets of suggested fallback language and it has developed these principles to guide the development of U.S. dollar LIBOR fallback language within its working...
LIBOR potentially will cease after the end of 2021. Why may this happen, what might replace LIBOR...and what should loan market participants be considering? Presented by Meredith Coffey, LSTA and Tess Virmani, LSTA....
March 27, 2018 LSTA Members: 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...
“End-of-LIBOR” Debate March 22, 2018 - 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? Three-month LIBOR hit 2.27% on Wednesday, up from 1.7% at year-end. On the plus side, this should be good for loan...
Leveraged Lending Guidance: Rumors of its Death March 6, 2018 - Is Leveraged Lending Guidance most likely to be 1) scrapped, 2) refined, or 3) unchanged? Folks reading reports from Comptroller Otting’s talk at SFIG Vegas may well select Option 1 (“scrapped”). However, Option 2 (“refined”) might the more probable answer. Below, we discuss what...
366 Madison Avenue, 15 th Floor, New York, NY 10017 Tel: 212.880.3000 Fax. 212.880.3040 www.lsta.org. Open-Market CLO Managers Credit Risk Retention Decision – Next Steps Many members have asked the LSTA about the timing and process of any potential government appeal of the U.S. Court of Appeals’ risk retention ruling. We have asked Sidley Austin,...
