As of January 1, 2022 the Financial Conduct Authority will no longer compel banks to quote LIBOR (and its variations) as a benchmark lending rate. The required transition is shaping up to be one of the most fundamental changes to the financial services industry in recent times.
It is estimated that there are over $300 trillion of LIBOR-referencing mortgages, commercial loans, bonds and derivatives. The problem is global, complex and isn’t going away. Affected banks, insurers, and other financial market participants need to act quickly, and effectively, to resolve it.
Adding to the complexity is confusion in the market due to challenges from the COVID19 pandemic. While regulators are standing firm on the deadline, this is no reason organizations should expect to find themselves in the dark on what to do.
Mayer Brown's new LIBOR Transition series of webinars and podcasts will provide information on the key issues and considerations you need to know about.
The Syndicated Loan Market and CLOs
The latest episode of our IBOR Transition podcast mini series, “The last 100 days of LIBOR” is now live. David Duffee and Sagi Tamir provide an overview of pricing developments in the syndicated loan market and how those developments may affect CLOs, including addressing the following:
Dealing with multiple reference rates Managing spread adjustments in SOFR deals and deals transitioning to SOFR Synthetic LIBOR
The Last 100 Days of LIBOR: Episode 5 - The Derivatives Market
The latest episode of our IBOR Transition podcast mini series, “The last 100 days of LIBOR” is now live. Edmund (Ed) Parker provides an overview of developments in the UK derivatives market, including addressing the following:
Tackling “tough legacy contracts” Recent, and imminent regulatory and legislative developments An analysis of the scope of the ISDA protocol and supplements The impending cessation of EONIA and its replacement with ESTR
The Last 100 Days of LIBOR: Episode 4 - The US Derivatives Market
The latest episode of our IBOR Transition podcast mini series, “The last 100 days of LIBOR” is now live. Anna Pinedo provides an overview of developments in the US derivatives market, including addressing the following:
New York State legislation regarding the discontinuance of LIBOR Managing the differences arising from the ARRC recommended use of SOFR and the direction of the derivatives market Mismatches between loans and the related hedges The CFTC’s SOFR-First Transition Initiative Using credit sensitive rates
The Last 100 Days of LIBOR: Episode 3 - Anti Trust
In this episode, Britt Miller and Thomas Panoff discuss antitrust conduct risk related to the transition process, including topics such as:
An overview of key pending litigation potentially impacting the transition Guidance from antitrust regulators to trade associations and the financial services industry Pending federal and state legislation, and Guidance in navigating common antitrust concerns as part of the transition.
The Last 100 Days of LIBOR: Episode 2 - Requirements of Regulators around the World
This second episode is designed to support your ongoing efforts toward an orderly transition away from LIBOR by year end-2021. We discuss perspectives from the following regions: The United Kingdom: UK definition of “conduct risk”; UK regulators and legislative solutions; Europe: a comparison between EU member states; possible EU solutions and next steps; Hong Kong and APAC: IBOR transition in HK; a comparison between HK and other regions; a view from Japan and Singapore; US: Statements by banking regulators on stopping LIBOR issuances this year; NY State LIBOR legislation; Federal LIBOR legislation status; ARRC adoption of CME forward-looking Term SOFR and related statements
The Last 100 Days of LIBOR: Episode 1 - Conduct Risk Issues
In this first episode of our IBOR Transition series, we introduce the following topics: Overview of Conduct Risk, and its importance during Q4 2021 to ensure orderly transition; Discuss a framework to assist with risk mitigation