The Alternative Reference Rates Committee today recommended that all market participants slow their use of Libor over the next six weeks to ease the year-end change to alternative reference rates.
This year’s AICPA annual conference brought together key players in the bank accounting space, including banking agencies and banks and audit firms of all sizes. The event served as a forum for public statements, insight and market intel from these institutions.
With certain tenors of Libor set to cease publication in December—and with the majority of adjustable rate mortgages insured by the Federal Housing Administration based on Libor—the Department of Housing and Urban Development is seeking feedback on how it can transition away from Libor to an alternative rate.
Lenders need to “pick up the pace” to be ready for the year-end change away from Libor to alternative reference rates, Federal Reserve Vice Chairman for Supervision Randal Quarles, who also chairs the Financial Stability Board, said in a speech today.
The Alternative Reference Rates Committee today published a set of frequently asked questions addressing its recent best practices recommendations related to scope of use for the SOFR Term Rate.
In a letter to nonfinancial corporations today, the heads of the Treasury Department, Federal Reserve, Securities and Exchange Commission and Commodity Futures Trading Commission addressed the ongoing Libor transition, noting that “a smooth transition will be best supported if financial institutions offer alternatives to USD Libor that meet borrower needs and if this is done in a timely fashion.”
Community banks look to the senior loan market for solutions to liquidity, competition, yield and growth.
The Alternative Reference Rates Committee today welcomed the prototype publication launch of its recommended spread adjustments and spread adjusted rates for cash products by Refinitiv—which it selected in March to publish Libor cash fallback spreads and rates.
As the Libor endgame continues to count down, what rates are America’s large and midsize banks planning to adopt to update their risk models?
Half or more of banks surveyed plan to use the SOFR daily, SOFR term structure, SOFR arrears compounding, and/or BSBY reference rates to replace Libor.