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Term SOFR Hedges: The Price of Perfection

Summary - As a result of the shift from LIBOR to the Secured Overnight Finance Rate (SOFR), borrowers who use interest rate swaps or options to manage interest rate risk may be asked to pay extra to maintain a hedge under...more

LIBOR to Survive Until September 30, 2024

Summary - The UK Financial Conduct Authority (FCA) recently announced the results of its November 2022 consultation on synthetic USD LIBOR. In line with the FCA consultation, USD LIBOR will continue to be published by the...more

The End is Near: Fed Issues Final USD LIBOR Transition Rule for Tough Legacy Contracts

Summary - The Federal Reserve Board last week adopted a final rule that implements the Adjustable Interest Rate (LIBOR) Act (the LIBOR Act). The LIBOR Act identifies benchmark rates based on the Secured Overnight Financing...more

As SOFR Deadline Looms, FCA Proposes Extensions for 'Synthetic' Approach to Legacy USD LIBOR Contracts

Summary - The United Kingdom Financial Conduct Authority (FCA) on November 23 published its Consultation on ‘Synthetic’ U.S. Dollar LIBOR to advance some synthetic applications of USD LIBOR from June 30, 2023, until...more

LIBOR Committee Publishes ‘Playbook’ as a Guide for Final Year of Conversion

Summary - The Alternative Reference Rate Committee (ARRC), convened by the Federal Reserve Board and the New York Fed to help ensure a successful transition from LIBOR to SOFR, this week published its LIBOR Legacy...more

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