IBOR resource centre

With an estimated USD5 trillion in contracts referencing LIBOR and maturing after June 2023 being in cash products (loans, bonds and the like), the ARRC has published a guide to support the active transition of legacy LIBOR cash products. This is particularly relevant as reverting to/relying on fallbacks may have unintended consequences in the cash markets, particularly as there is no consistent approach to fallbacks in these markets. Essential reading for all holders of cash products referencing LIBOR, this press release offers both word and pdf versions of the guide.

The FCA are seeking views on winding down the 1, 3 and 6-month synthetic sterling LIBOR settings and also seeking information on market participants’ exposure to US dollar LIBOR and the extent to which the cessation of USD LIBOR might have unintended consequences. If you reference ANY of these benchmarks in contracts, please consider responding to the consultation (even a general letter if the specific questions don’t feel relevant to you) as responses from individual organisations are very highly valued by the regulator. This will be the last opportunity to influence the retention of synthetic LIBOR.

The ARRC’s latest update summarising the progress in USD transition.

Taking a broadly similar approach to the legislation passed in New York in 2020, The Consolidated Appropriations Act, 2022, contains legislation that provides a targeted solution for financial contracts that mature after the mid-2023 cessation of LIBOR and have no effective means to replace LIBOR upon its cessation. This should reduce/minimize legal, operational, and economic risks associated with the transition.

Firms have taken huge strides away from using LIBOR as a benchmark – but, as Sarah Boyce reports, it’s not over yet

This briefing outlines the scope of application of synthetic LIBOR and the impact of the Bill on references to LIBOR in legacy contracts that are not actively transitioned to alternative rates ahead of the relevant deadline.

Treasury Department Releases Letter to Nonfinancial Corporate Stakeholders on LIBOR Transition.

Updated with Appendix 3F on compounded SONIA based indices. RFR Working Group.

Our new Guide to the recently published LMA forms of loan agreement referencing RFRs, produced by Slaughter and May for the ACT, aims to help treasurers get to grips with these significant changes to customary lending terms and highlight the aspects of the new LMA RFR terms that borrowers might wish to adjust or negotiate.

James Winterton, ACT Associate Director, Policy & Technical, summarises and links to the webinar recording.

The objective of this Briefing Note is to provide a starting point for corporates who currently use a LIBOR as a reference rate and need to be prepared to move to alternate (RFR) benchmarks ahead of the 2021 deadline. It is structured as a checklist to assist corporate treasurers as they develop project plans for managing the transition.