New York Gov. Andrew Cuomo yesterday signed a bill developed by the Alternative Reference Rates Committee that will facilitate the transition away from the London Interbank Offered Rate.
Browsing: Commercial Lending
With Libor slated to sunset by the end of 2021, banks need to identify and mitigate their Libor transition risks. According to Fed leadership, “The firms we supervise should be aware of the intense supervisory focus we are placing on their transition and especially on their plans to end issuance of new contracts by year end.” Overall, the Libor transition is something bankers will want to have their arms firmly wrapped around sooner rather than later.
U.S. dollar Libor will officially come to an end starting this year. With just months to go in the transition effort, banks face a variety of challenges.
When the coronavirus pandemic began, Craft Bank was just about to begin its capital raise as a de novo community bank in Atlanta. With its roadshow about to begin, CEO Ross Mynatt and his small team threw out the playbook and began pivoting.
Small businesses owned by older entrepreneurs—those over the age of 45—have been particularly affected by the COVID-19 pandemic, compared to those owned by younger entrepreneurs, according to a new survey from the Federal Reserve Bank of New York and AARP published today.
With the publication of all tenors of London Interbank Offered Rate set to cease after June 30, 2023, the Alternative Reference Rates Committee today outlined a model for using the Secured Overnight Financing Rate—the ARRC’s preferred Libor alternative—in asset-backed securities products, including non-collateralized loan obligation asset-backed securities, mortgage-backed securities and commercial mortgage-backed securities products.
The Senate today voted 92 to 7 to pass a bill extending the Paycheck Protection Program.
As part of its ongoing effort to support the transition away from the London Interbank Offered Rate, the Alternative Reference Rates Committee today supplemented its recommended hardwired fallback language for syndicated and bilateral business loans that reference U.S. dollar Libor.
The Alternative Reference Rates Committee today said it “will not be in a position” to recommend a forward-looking term rate using the Secured Overnight Financing Rate by mid-2021.
The volume of financial instruments that reference USD Libor has grown to $223 trillion, up from $199 trillion in 2016, according to the Alternative Reference Rates Committee.