LIBOR Transition

By: Mayer Brown
  • Summary

  • 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.
    ©2023 Mayer Brown
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Episodes
  • The Last 100 Days of LIBOR: Episode 6 - The Syndicated Loan Market and CLOs
    Dec 2 2021

    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
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    41 mins
  • The Last 100 Days of LIBOR: Episode 5 - The Derivatives Market
    Nov 15 2021

    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
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    22 mins
  • The Last 100 Days of LIBOR: Episode 4 - The US Derivatives Market
    Nov 11 2021

    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
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    19 mins

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