News & Analysis as of

Lenders International Swaps and Derivatives Association

Cadwalader, Wickersham & Taft LLP

FCA Seeks Feedback on ‘Synthetic’ USD LIBOR

On November 23, the UK’s Financial Conduct Authority (“FCA”) released its further consultation to require the administrator of LIBOR to publish a synthetic version of 1-, 3-, and 6-month U.S. dollar LIBOR settings for a...more

A&O Shearman

LIBOR transition and loan hedging: basis risk and how to deal with it

A&O Shearman on

Global LIBOR transition efforts continue apace. However, switching hedged loans to risk free rates is a particularly challenging area. We discuss what borrowers, lenders and hedge providers really need to focus on in order...more

McGuireWoods LLP

UK Working Group Publishes Paper on Credit Adjustment Spread Methodologies

McGuireWoods LLP on

With the end of LIBOR drawing closer, the FCA, Bank of England and the Working Group on Sterling Risk-Free Reference Rates (the Working Group) are encouraging market participants to actively transition from referencing LIBOR...more

Greenbaum, Rowe, Smith & Davis LLP

The Clock Is Ticking Towards the End of LIBOR; What Borrowers Can Do Now to Mitigate the Risks

Since the end of 2017, we have been talking about the discontinuation of LIBOR as a reference rate for borrowers who finance with floating rate loans.  The December 2021 end date is fast approaching, but much work remains to...more

Kramer Levin Naftalis & Frankel LLP

Decoding Derivatives - Q4 2019

Thomas Cook Takeaways - For credit default swap (CDS) protection buyers with protection on Thomas Cook Group Plc,  a U.K. scheme of arrangement paving the way for a £1.6 billion debt-to-equity exchange imposed on all debt...more

White & Case LLP

LIBOR and the transition to SONIA: compounding the problem?

White & Case LLP on

In 2012, the Wheatley Review recommended reform rather than replacement of LIBOR, on the basis that a transition to a new benchmark would pose an unacceptably high risk of financial instability. Reform came in the form of a...more

Jones Day

ARRC Publishes Final LIBOR Transition Recommendations for Floating Rate Notes and Syndicated Business Loans

Jones Day on

The Situation: Financial industries around the world are addressing the probable cessation of LIBOR interest rates before 2022 by, among other things, developing language designed to substitute an industry-approved successor...more

Jones Day

ARRC Releases Market Consultations for the Securitization and Bilateral Loan Sectors

Jones Day on

The Situation: The Alternative Reference Rates Committee ("ARRC") released market consultations on the securitization and bilateral loan markets on December 7, 2018, concerning potential paths forward for benchmark (e.g.,...more

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