Fannie Mae and Freddie Mac today released a Libor Transition Playbook to help mortgage industry stakeholders prepare for the transition from the London Interbank Offered Rate—which is not guaranteed to be available after 2021—to alternative reference rates.
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The Alternative Reference Rates Committee today issued a set of best practices to help market participants complete preparations for the possible cessation of the U.S. dollar-denominated London Interbank Offered Rate after 2021, including recommended timelines.
As financial institutions around the globe continue preparing to transition financial contracts away from the London Interbank Offered Rate, which is not guaranteed to be sustained after 2021, BAFT—ABA’s global transaction banking subsidiary—and the International Trade and Forfaiting Association noted that the transition could have implications for master participation agreements.
As part of its ongoing efforts to support the financial industry’s transition away from the London Interbank Offered Rate, the Alternative Reference Rates Committee today released a timeline and best practices for industry vendors in supporting the change to the Secured Overnight Financing Rate.
The Alternative Reference Rates Committee today recommended a spread adjustment methodology for cash products referencing the London Interbank Offered Rate.
The Alternative Reference Rates Committee today issued a consultation on draft fallback language for variable-rate private student loans that reference the U.S. dollar London Interbank Offer Rate.
Bankers have a menu of potential alternative reference rates, each of which requires attention to understand.
The Federal Reserve Bank of New York today published its final calculation methodology for determining the daily compounded averages of the Secured Overnight Financing Rate, as well as the daily SOFR index that will allow users to calculate average rates over customer time periods.
To help minimize any expected changes in the value of financial contracts that might result from a sudden reference rate shift, the Alternative Reference Rates Committee today sought public feedback on methodologies for calculating spread adjustments on financial products that reference the London Interbank Offered Rate.