IBOR Transition Digest – Finance and Banking

Welcome to the latest issue of Mayer Brown’s IBOR Transition Digest, a periodic compendium of global market and regulatory developments and information on the complex issues facing financial market participants as they plan to switch from LIBOR and its variants. at replacement benchmark interest rates. As attention to IBOR the transition is accelerating and becoming more focused, it is essential to have access to comprehensive and timely resources in the market.

For additional resources and an introduction to our Global Inter-Practice IBOR Transition Working Group, please visit Mayer Brown’s IBOR Transition Portal.

Thought leadership | News and Developments | Events

THINK LEADERSHIP

“Racing” to the IBOR transition finish line
Journal of Investment Compliance, Winter 2021, August 17, 2021
Since the publication of our item In the Winter 2020 Structured Finance Bulletin, bridging activity accelerated significantly, largely due to several key developments in 2021, including the effectiveness of the ISDA IBOR protocol and the announcements of March 5, 2021 the planned termination of publication of all LIBOR parameters.

NEWS AND DEVELOPMENTS

United States – Syndicated and bilateral loans

SOFR spreading solutions: the price of imperfection (LSTA, September 8, 2021)
The historical (and likely future) difference between LIBOR and SOFR is much larger than the current “LIBOR-SOFR spot spread” and, therefore, the spread between where the LIBOR-SOFR spread ” should ”be and where it actually is can create a conundrum when parties consider spread adjustments on new SOFR loans.

LSTA publishes concept paper on the term SOFR (LSTA, August 31, 2021)
In the latest addition to its SOFR document library, LSTA added a Concept Credit Agreement that illustrates a term loan facility that references the SOFR term as the benchmark interest rate.

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This article by Mayer Brown provides information and commentary on legal issues and developments of interest. The foregoing does not constitute a complete treatment of the matter at hand and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action on the matters discussed in this document.