Weak contract language could lead to post-Libor ARM securities losses
Bondholders could see principal losses if, due to the way the documents are worded, the rate is frozen at the last published amount.
SOFR
Opinion Housing market needs SOFR alternative — now
This proposed Libor replacement is an imaginary, backward-looking benchmark dreamed up by the economists at the Fed with no discernible market.
Christopher Whalen
Whalen Global Advisors LLC
Podcast Libor is out, but SOFR isn’t quite in
As the discredited Libor interest rate benchmark enters its last months, some banks are turning away from the repo-based alternative that regulators prefer. What could go wrong?
Libor transition recommendation gets boost from further ARRC guidance
Newly published conventions from an industry-led benchmark replacement study group could spark adoption of more built-in rate transition plans into loan documents.
By
John Hintze
CFPB proposes rule to facilitate Libor transition for creditors
The Consumer Financial Protection Bureau seeks to address challenged posed by the sunset of the London interbank offered rate at the end of 2021.
GSEs issue Libor-to-SOFR transition playbook
Fannie Mae and Freddie Mac have different timelines for the switch.
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.
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.
‘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.
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