Advocacy & Regulatory

What you need to know in today’s environment. LSTA advocates on behalf of all participants in the syndicated loan market, working directly with regulators and legislators to maintain a fair, orderly, and efficient marketplace that engenders confidence.

The LSTA actively monitors emerging regulatory issues and has successfully advocated the industry’s position on risk retention, the Volcker Rule, Liquidity Risk Management Rules, FATCA, Leveraged Lending Guidance, FDIC assessments, and more. This section of University covers Dodd-Frank risk retention rules, Alternative Reference Rates Committee (ARRC) consultations and what they mean to our constituents, LIBOR and its alternative SOFR, and more.

Level 1

LSTA University Level 1
  • The Great Migration Away from LIBOR

    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. We also co-chair the ARRC’s Business Loans Working Group (which is tasked with solving LIBOR transition problems for syndicated and bilateral loans) and the Business Loans Operations Subgroup (which is working to operationalize loan solutions), and are a member of the ARRC’s Securitization Working Group (where we represent the interests of CLOs.)

  • LIBOR FAQ's

    LIBOR FAQ’s

  • LSTA White Paper: Addressing Loan and CLO Misperceptions

    Broadly syndicated loans to non-investment grade U.S. Corporations are widely misunderstood outside of the loan industry. A number of commentators imply that leveraged loans are shadowy corporate equivalents to pre-crisis sub-prime mortgages. This is clearly not true and, to respond to such conflations, the LSTA recently published this white paper addressing these views.

Level 2

LSTA University Level 2
  • LIBOR Replacement: Understanding the ARRC's Loan Fallback Consultation

    Presentation given by Meredith Coffey, EVP Research & Regulation & Tess Virmani, Associate General Counsel & SVP that helps interpret the LIBOR replacement and Understanding the ARRC’s Loan Fallback Consultation.

  • LSTA White Paper: Addressing Loan and CLO Misperceptions

    Broadly syndicated loans to non-investment grade U.S. Corporations are widely misunderstood outside of the loan industry. A number of commentators imply that leveraged loans are shadowy corporate equivalents to pre-crisis sub-prime mortgages. This is clearly not true and, to respond to such conflations, the LSTA recently published this white paper addressing these views.

Level 3

LSTA University Level 3
  • LIBOR LOAN/ARRC FALLBACK CONSULTATION

    On September 24, 2018, the Alternative Reference Rates Committee (ARRC) released a syndicated loans LIBOR fallback consultation to address this very issue. The ARRC is seeking feedback from individual institutions to understand challenges and benefits of each approach from that institution’s perspective. Meredith Coffey, Executive Vice President Associate General Counsel, Research & Regulation weighs in on what it means, and how to prepare.

  • LIBOR Fallbacks: The Market Responds

    LIBOR is somehow simultaneously both a pressing issue and a slow-motion market upheaval. A first step to avoiding the upheaval scenario is the development of fallback language across cash asset classes. (Fallback language answers the critical question “If LIBOR disappeared tomorrow, to what rate would my contract fall back?” Is it Prime? Is it SOFR? Is it the last fixed rate? Is it nothing?!)

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LIBOR: The Future of Forward Looking Term SOFR

The syndicated loan market would really like an IOSCO-compliant Forward Looking Term SOFR to develop. If such a rate developed, it would solve several problems inherent in SOFR.