News & Analysis as of

Interest Rates Secured Overnight Funding Rate (SOFR)

ArentFox Schiff

The End of LIBOR: Hotel California Edition [Part IV]

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During the transition of the London InterBank Offered Rate (LIBOR) to the approved substitute benchmark in the United States, the Secured Overnight Financing Rate (SOFR), a basic question was raised as to whether the new...more

ArentFox Schiff

The End of LIBOR: Hotel California Edition [Part III]

ArentFox Schiff on

During the London InterBank Offered Rate (LIBOR) transition, and post LIBOR’s end date of June 30, 2023, the goal for all should be that (1) the effective interest rates be generally economically equivalent as a result of the...more

Goodwin

Libera nos a LIBOR - Standard Chartered Plc v Guaranty Nominees Limited and Others [2024] EWHC 2605

Goodwin on

In a decision with general importance to financial markets, Standard Chartered Plc v Guaranty Nominees Limited and others [2024] EWHC 2605 represents the first time that the English court has ruled on the issue of which...more

White & Case LLP

South Africa M&A regulation: Adapting to change

White & Case LLP on

A peaceful election and slowing inflation have put M&A markets in South Africa in a more advantageous position. However, taking advantage of South African deal opportunities requires a clear understanding of a rapidly...more

Jones Day

FCA Consulting on Proposed Changes to the Derivatives Trading Obligation

Jones Day on

The Background: In 2021, the Financial Conduct Authority ("FCA") and HM Treasury began consulting on the Wholesale Markets Review (the "Review"), a broad review of the structure, functioning, and regulation of secondary...more

Crunched Credit

Could We Bring It All Down?

Crunched Credit on

I’m going to tell you a story. This is the type of thing told around campfires designed to scare naïfs, who know too little, and PhDs who (think) they know too much. I don’t necessarily believe in the story, but it could be...more

Crunched Credit

Trading Is Not a Dirty Word (CRE CLO)

Crunched Credit on

As we begin to reflate the CRE CLO business this year with shrinking spreads and hopefully shrinking SOFR, we need to think of this as CRE CLO 3.0. This business,  this technology, which is truly a brilliant way to deliver...more

Cadwalader, Wickersham & Taft LLP

Benchmarks Beyond January 2024 - 2024 Update on the Cessation of CDOR and SIBOR

As we kick off 2024, the focus on the unavailability of certain benchmarks continues on. To refresh, we have already seen the benchmark for US Dollars generally replaced with the Secured Overnight Financing rate as...more

ArentFox Schiff

The End of LIBOR: Hotel California Edition (Part I)

ArentFox Schiff on

Although July 3 was the first business day on which no USD LIBOR was published, many financial instruments will not reset until the next reset date, based upon the tenor of each instruments’ underlying benchmark, which could...more

WilmerHale

LIBOR Fallback to Prime May Increase Corporate Loan Costs

WilmerHale on

The London Interbank Offered Rate (LIBOR) officially ceased to be published on June 30, 2023. The change comes after almost 40 years of LIBOR serving as the principal benchmark rate for trillions of dollars of various...more

Lippes Mathias LLP

The Landscape of Commercial Lending Conditions and What May Come

Lippes Mathias LLP on

In recent years, U.S. banks have been tightening lending conditions. This trend is expected to continue for commercial loans because of various factors, including the ongoing effects of the COVID-19 pandemic, changes in...more

Holland & Knight LLP

ANH Colombia publica Acuerdo 3 de 2023: Cambio tasa LIBOR por SOFR

Holland & Knight LLP on

La Agencia Nacional de Hidrocarburos (ANH) de Colombia expidió el Acuerdo 3 de 2023 el 19 de julio de 2023, "por el cual se adoptan medidas para mitigar los efectos adversos ocasionados por el cambio de la tasa de interés...more

A&O Shearman

USD LIBOR panel has ceased…what now?

A&O Shearman on

June 30th has passed and one-, three- and six-month USD LIBOR settings have ceased to be published. As confirmed by the FCA on 3 April 2023, the ICE Benchmark Administration (IBA) has begun publishing non-representative...more

Cadwalader, Wickersham & Taft LLP

FCA Announces That USD LIBOR Is Not Representative

The last publication of USD LIBOR on the basis of panel bank submissions occurred on June 30, 2023. As of July 3, 2023, 1-, 3- and 6-month USD LIBOR settings will be calculated using a synthetic methodology based on CME Term...more

Foley & Lardner LLP

Treasury Releases Guidance on the Transition from Interbank Offer Rates to Other Reference Rates with Respect to the Interest...

Foley & Lardner LLP on

On June 30, 2023, the United States Department of the Treasury (“Treasury”) published Final Regulations as guidance on the transition from the use of the Interbank Offer Rate (IBOR) to the Secured Overnight Financing Rate...more

Sullivan & Worcester

Drawing the line – Where are we now on USD LIBOR transition in the trade finance sector?

Sullivan & Worcester on

Jacqueline Cook, Of Counsel and Larissa Head, Trainee Solicitor, provide an update on the transition away from USD LIBOR with the deadline of 30 June 2023 upon us. What do market participants in the trade finance industry...more

ArentFox Schiff

A Long Hot Summer: Effective Variable Rates Subject to Increase (Irrespective of General Market Conditions)

ArentFox Schiff on

There are major issues arising from the phaseout of the US Dollar London InterBank Offered Rate (LIBOR), which will soon become apparent in connection with LIBOR’s fast-approaching end date. This will dramatically impact many...more

Orrick, Herrington & Sutcliffe LLP

Rates committee approves SOFR best practices

On April 21, the Alternative Reference Rates Committee (ARRC) announced the endorsement of the CME Group’s Term SOFR rates, which ARRC formally recommended in 2021 (covered by InfoBytes here). The ARRC endorsement recommended...more

Cadwalader, Wickersham & Taft LLP

ARRC Updates its Recommendations for Use of Term SOFR

The Alternative Reference Rates Committee (ARRC) announced three updates to its recommendations for the use of Term SOFR.  First, the ARRC clarified the scope of “business loans” that may be hedged with Term SOFR swaps....more

Cadwalader, Wickersham & Taft LLP

What Are the Alternatives? April 2023 - Current State of Play of Alternative Currency Benchmark Rates

As we finish the last season of LIBOR replacement, the fund finance market is busy amending our loan documents to include SOFR as the interest rate benchmark for U.S. dollar loans. While the cessation date for USD LIBOR is...more

Cadwalader, Wickersham & Taft LLP

FCA Compels the Publication of ‘Synthetic’ USD LIBOR

After USD LIBOR stops being published on June 30, 2023, “synthetic” USD LIBOR will continue to be published for a limited period, according to the UK’s Financial Conduct Authority (“FCA”). The FCA said that the “synthetic”...more

Mayer Brown Free Writings + Perspectives

FCA Synthetic LIBOR Announcement

On April 3, 2023 the U.K. Financial Conduct Authority (“FCA”) announced that it will require the administrator of U.S. dollar LIBOR to continue to publish one, three and six-month U.S. dollar LIBOR settings until September...more

Goodwin

Debt Download - March 2023

Goodwin on

Welcome to Goodwin’s Debt Download, our monthly newsletter covering what you need to know in the leveraged finance market. This month, we focus our coverage on the turmoil in the banking industry resulting from the failures...more

Foley & Lardner LLP

Top Ten Risk Mitigation Issues in Renewable Energy Construction Loan Agreements

Foley & Lardner LLP on

Construction financing is used to fund the construction of renewable projects prior to such projects obtaining long-term financing. Because construction loans are disbursed during a high-risk phase of a project, these loans...more

ArentFox Schiff

Remote Work and Higher Interest Rates Drive Office Defaults Across the United States

ArentFox Schiff on

With some of the nation’s largest real estate owners defaulting on, and looking to restructure, loans backed by commercial office buildings, what may have seemed like an impossibility a few short years ago, is now very much a...more

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