Fannie Mae and Freddie Mac today announced plans to transition legacy Libor loans and securities to the Secured Overnight Financing Rate, the Alternative Reference Rates Committee’s preferred Libor alternative.
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The Federal Reserve today adopted a final rule that implements the Adjustable Interest Rate Act by identifying benchmark rates based on the Secured Overnight Financing Rate that will replace Libor in certain financial contracts after June 30, 2023.
Most respondents indicated they have documented remediation plans in place and highlighted plans to actively transition their Libor loans.
The Alternative Reference Rates Committee today released a playbook to help support the transition away from legacy Libor cash products.
The Alternative Reference Rates Committee today issued recommendations for contracts linked to U.S. dollar Libor Intercontinental Exchange Swap Rates. These recommendations include a suggested fallback formula that can be used for USD Libor ISR fixings after three-month USD Libor has been discontinued or becomes non-representative.
ABA this week wrote to the Financial Accounting Standards Board in support of a deferral of the sunset date for the transition relief provided by FASB and the expansion of the definition of the Secured Overnight Financing Rate, or SOFR, to include term SOFR as eligible to be designated a benchmark index for hedge accounting purposes.
To help accelerate the growth of Secured Overnight Financing Rate options trading, CME Group today announced a new “SOFR First for Options” initiative that will kick off in June.
For many smaller banks, having a credit-sensitive component that reflects their cost of borrowing is critical. They need a rate that reflects their credit risk.
While financial services firms are “largely on track” for a successful transition away from Libor, half of them are still facing challenges related to systems and operations readiness, according to a new survey from Bloomberg.
The Senate late Thursday night passed an omnibus spending package that included a bipartisan, American Bankers Association-backed bill to address “tough legacy” Libor contracts.