GSEs issue Libor-to-SOFR transition playbook
Fannie Mae and Freddie Mac have different timelines for the switch.
LIBOR
Opinion The case for industrywide use of SOFR
The group that worked with the Fed to devise an alternative rate to Libor rejects criticism that the index favors megabanks.
Andrew Gray
Alternative Reference Rates Committee
Fed embraces Libor again and risks undermining push to kill it
Regulators on both sides of the Atlantic have spent the better part of three years trying to kill the London interbank offered rate. Now, they’re looking to it once again to underpin hundreds of billions of dollars in loans as they seek to rescue their economies.
MBA applauds Fed’s CMBS stimulus as credit index hits 5-year low
The Federal Reserve's $2.3 trillion loan stimulus includes plans for outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations.
SFVegas: NY legislative route gains steam as Libor fix
At a panel during day two of the Structured Finance Association’s ABS trade show in Las Vegas, guest speakers said a strong consensus is building toward asking lawmakers in upstate New York to enact mandatory “fallback” language for Libor replacement in financial contracts.
By
Glen Fest
Fed’s Powell open to more than one Libor alternative
Federal Reserve Chairman Jerome Powell told senators that the central bank is willing to explore a credit-sensitive interest benchmark in addition to the secured overnight financing rate, which some banks say could cause problems during economic stress.
Libor transition hits hurdle as SOFR-linked bond sales slump
The biggest issuers of bonds tied to the benchmark tapped to replace U.S. dollar Libor are suddenly pulling back, a potential blow to efforts by regulators to wean the financial system off a much-maligned reference rate.
Others may follow the GSEs’ early move on Libor exit
The government-sponsored enterprises’ plan to cease accepting loans pegged to the London interbank offered rate a year ahead of its scheduled expiration is expected to hasten action in securitized markets.
Why the C&I slowdown is likely to persist in 2020
Political uncertainty, sector-specific concerns as well as interest rate and labor trends may continue to depress commercial and industrial lending in the coming months.
By
Andy Peters
‘It’s game time’: Libor transition to pick up steam in new year
Regulators' oversight of the industry's switch to a new interest rate benchmark is expected to intensify as a key deadline approaches.
Why this bank is ditching Libor now
Lenders have until the end of 2021 to phase out their use of the London interbank offered rate in setting interest rates, but ServisFirst Bancshares and its CEO Tom Broughton see little reason to wait when a replacement is already available.
Freddie Mac offers deal that helps pave the way for life without LIBOR
Freddie Mac launched a groundbreaking multifamily structured pass-through deal that includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate for the first time ever.
OCC flags risks from banks’ tech overhaul, Libor transition
The agency’s semiannual report warned institutions to be mindful of operational risks from the innovation in core banking systems, and detailed supervisory steps to monitor the adoption of a new reference rate.
Congress may need to step in on Libor switch, Mnuchin warns
The Treasury secretary suggested a role for lawmakers in containing any fallout with financial contracts stemming from the transition to a new interest rate benchmark.
Is the end of Libor a threat to financial stability?
Concerns over banks’ level of preparation have led to worries about disruptions in the lending market, and some financial institutions warn that a new interest rate benchmark could cause lenders to pull back on credit.
Regional banks sound alarm over new interest rate benchmark
Executives sent a letter to the federal banking regulators last month expressing concern that an alternative to the London interbank offered rate could limit credit availability.
ABS East: Still not ready on Libor switch
Investors and issuers understand Libor’s end is a near certainty. But many remain unprepared to replace the benchmark
By
Glen Fest
The road to replacing Libor: a finance legend’s alternate path
Richard Sandor's Ameribor benchmark continues to gain traction in the regional/community bank field.
RMBS trustees worry that consent process will slow down Libor switch
Trustees are concerned about obtaining proper consents from legacy residential mortgage-backed securities investors in a timely fashion in order to make the switch from Libor to another index, Fitch Ratings said.
HPS plans SOFR as post-2021 Libor replacement in new CLO offering
According to Covenant Review, HPS Investment Partners is among the first CLO managers to plan on the use of a forward-looking SOFR term rate to price coupons if Libor benchmark rates disappear after 2021, as expected.
By
Glen Fest
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