With the London Interbank Offered Rate — which underpins more than $350 trillion in mortgages, commercial loans, bonds and derivatives worldwide, including $200 trillion in U.S. dollar-denominated financial instruments — not guaranteed to be sustained after 2021, what should banks be doing now to prepare for a transition away from the widely used benchmark?
The Alternative Reference Rates Committee — a group of private-sector market participants and public agencies convened by the Federal Reserve — today released two free webinars to help market participants better understand and respond to its request for feedback on draft fallback language for certain financial instruments that reference the U.S. dollar London Interbank Offer Rate.
Risks to the U.S. financial system remain moderate, though factors outside the U.S. — including Brexit — could potentially threaten financial stability in the months ahead, the Financial Stability Oversight Council said today in its annual report.
Completing the Securities and Exchange Commission’s rulemaking on best interest standards for broker-dealers and investment advisers is a “key priority” for 2019, SEC Chairman Jay Clayton said in a speech today.
The Alternative Reference Rates Committee today issued consultations on draft fallback language for bilateral business loans and securitizations that reference the U.S. dollar London Interbank Offer Rate.
The Commodity Futures Trading Commission is working to “troubleshoot” issues in transitioning CFTC-regulated derivatives contracts from the London Interbank Offered Rate to the new Secured Overnight Financing Rate, CFTC Chairman Christopher Giancarlo said today.
As the longstanding Libor rides off into the sunset, what will replace it? And what do banks need to do to prepare?
As part of the ongoing effort to replace Libor with an alternative rate, the Federal Home Loan Banks today issued $4 billion in debt tied to the Federal Reserve’s Secured Overnight Financing Rate, or SOFR, according to reports today.
With the viability of the London Interbank Offered Rate uncertain beyond the end of 2021, the Small Business Administration is changing the base rate for fixed-rate loans in its popular 7(a) program to the prime rate.
The Alternative Reference Rates Committee today issued consultations on draft fallback language for floating rate notes and syndicated business loans that reference the U.S. dollar London Interbank Offer Rate.