The Replacements
As the longstanding Libor rides off into the sunset, what will replace it? And what do banks need to do to prepare?
Browsing: Libor
FHLBs Issue $4B in Debt Tied to Alternative Reference Rate
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.
SBA 7(a) Program Switches Fixed Base Rate from Libor to Prime
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.
Public Feedback Sought on Contract Language for Libor Transition
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.
Fed Gov. Quarles: Efforts to Implement SOFR Ahead of Schedule
In just three months since the secured overnight financing rate was published, the number of transactions underlying SOFR on a daily basis has already surpassed the amount of those underlying Libor, Federal Reserve Vice Chairman for Supervision Randal Quarles said during taped remarks at a public roundtable hosted by the Alternative Reference Rates Committee today.
ISDA Seeks Feedback on Fallback Plan for Key Interbank Offered Rates
The International Swaps and Derivatives Association today published a consultation paper outlining plans to amend its standard documentation to implement fallbacks for certain key interbank offered rates in the event that an IBOR is permanently discontinued.
ARRC Issues Guiding Principles for Transitioning Contracts from Libor
The Alternative Reference Rates Committee today issued a set of guiding principles for the development of fallback language for new financial contracts for loans, securitizations and floating rate notes to ensure that these contracts will continue to be effective in the event that U.S. dollar Libor ceases to be published.
ABA Calls for Flexibility from FASB as Libor Transition Commences
With the New York Federal Reserve beginning to publish the Secured Overnight Financing Rate — or SOFR — next week, the American Bankers Association today wrote to the Financial Accounting Standards Board in support of including the overnight index swap rate based on SOFR as a benchmark interest rate for hedge accounting purposes, as an alternative to U.S. dollar Libor.
Fed Committee Issues Second Report on Transition from Libor
The Alternative Reference Rate Committee today issued a second report summarizing its decision to adopt the Secured Overnight Financing Rate — or SOFR — a broad measure of overnight Treasury financing transactions, as an alternative to U.S. dollar Libor.
New York Fed to Begin Publishing New Reference Rate on April 3
The Federal Reserve Bank of New York will begin publishing the Secured Overnight Financing Rate, or SOFR, on April 3, the bank announced today.