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 finan ...
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The Last 100 Days of LIBOR: Episode 6 - The Syndicated Loan Market and CLOs
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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 adjustmen…
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The Last 100 Days of LIBOR: Episode 5 - The Derivatives Market
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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 …
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The Last 100 Days of LIBOR: Episode 4 - The US Derivatives Market
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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…
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The Last 100 Days of LIBOR: Episode 3 - Anti Trust
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In this episode, Britt Miller and Thomas Panoff discuss antitrust conduct risk related to the transition process, including topics such as: An overview of key pending litigation potentially impacting the transition Guidance from antitrust regulators to trade associations and the financial services industry Pending federal and state legislation, and…
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The Last 100 Days of LIBOR: Episode 2 - Requirements of Regulators around the World
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This second episode is designed to support your ongoing efforts toward an orderly transition away from LIBOR by year end-2021. We discuss perspectives from the following regions: The United Kingdom: UK definition of “conduct risk”; UK regulators and legislative solutions; Europe: a comparison between EU member states; possible EU solutions and next…
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The Last 100 Days of LIBOR: Episode 1 - Conduct Risk Issues
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In this first episode of our IBOR Transition series, we introduce the following topics: Overview of Conduct Risk, and its importance during Q4 2021 to ensure orderly transition; Discuss a framework to assist with risk mitigationOleh Mayer Brown
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Assessing the Post IBOR Cessation US Litigation Risk Landscape
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In this latest webinar in our IBOR Transition series, we will discuss the recent New York LIBOR legislation and analyze some of the key litigation risks that the cessation of LIBOR presents in spite of such legislation. Mark Hanchet, Jenn Rosa, Chris Houpt and Anjanique Watt will cover topics such as: The scope and impact of the April 6 New York le…
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The IBOR Transition End Game: The State of Play in Sterling Loan Markets
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In this latest in our LIBOR Transition series, Mayer Brown Partner Ash McDermott and UK Finance LIBOR Transition Director Daniel Cichocki will focus primarily on the impact of recent announcements and development on market participants, including:What Banks and borrowers should be planning to do for the remainder of 2021; The impact of recent annou…
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In this latest webinar in our IBOR Transition series, we will reflect on the impact of recent developments for derivative based products. Edmund Parker and Patrick Scholl will look at: How successful has the ISDA Protocol been? What does the FCA Announcement on the future cessation or loss of representativeness of all 35 LIBOR benchmarks mean in th…
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Ambiguity and Confusion Surround the End of LIBOR
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In this latest webinar in our IBOR Transition series, David Duffee, Adam Wolk and Mary Jo Miller reflect on the recent IBA and FCA announcements on the cessation of LIBOR and introduce the following topics: What is “synthetic LIBOR” and why won’t it work in the United States (but will work in Europe)? Fallbacks in 2021 – are US regulators mandating…
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Exploring Credit Sensitive Alternatives to SOFR
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The Alternative Reference Rates Committee (ARRC) has selected Secured Overnight Financing Rate (SOFR) as the replacement for LIBOR in the US. However, a group of US banks — primarily non-money centers have expressed concerns about the use of SOFR as the replacement benchmark for LIBOR. They argue that during times of economic stress, SOFR would dec…
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In this second part, Mayer Brown partners Ed Parker, Chris Arnold and Curtis Doty will focus on an analysis of the protocol and answer questions such as: “What are the key implications for loan markets? and “Who are the likely adherents to the protocol?”Oleh Mayer Brown
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Mayer Brown partners Ed Parker, Chris Arnold and Curtis Doty will discuss the key features of the protocol and its underlying document template as well as issues such as adherence to the protocol and key timing milestones. In the second part of the edition, we will focus on an analysis of the protocol and answer questions such as: “What are the key…
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SOFR Loan Documentation: 8 things for lenders and borrowers to consider
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Mayer Brown Partners David Duffee, Jennie Kratchovil, Adam Wolk and Paul Forrester discuss 8 key things that both borrowers and lenders need to focus on when documenting SOFR loans in the face of the Alternative Reference Rates Committee (ARRC) hardwired approach on SOFR.Oleh Mayer Brown
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Issues Impacting Floating Rate Notes, Preferred Stock, Depositary Shares, and Capital Securities: Part 2
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Join Mayer Brown partners Anna Pinedo and Paul Forrester for the second of our two part edition focusing on the key LIBOR related issues impacting Floating Rate Notes (FRNs), Preferred Stock, Depositary Shares, and Capital Securities. In this part, we will focus specifically addressing LIBOR based Preferred Stock, Depositary Shares, and Capital Sec…
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Issues impacting Floating Rate Notes, Preferred Stock, Depositary Shares, and Capital Securities: Part 1
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In the latest in our LIBOR Transition Webinar Series, join Mayer Brown partners Anna Pinedo and Jerry Marlatt and Counsel Bradley Berman for the first in this two part edition focussing on the key LIBOR related issues impacting Floating Rate Notes (FRNs), Preferred Stock, Depositary Shares, and Capital Securities. In this part, we will focus specif…
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In the latest instalment of our LIBOR Transition series of webinars and podcasts, Mayer Brown partner Oral Pottinger and Christopher Cahn, Managing Director from Morae discuss the 10 things that you need to do in the next 100 days to ensure that you have a solid foundation for successful execution of your IBOR transition strategy.…
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Welcome to Part 2 of the latest instalment where Mayer Brown partner Oral Pottinger and Morae managing director Christopher Cahn, continue to discuss the 10 steps you should take within the next 100 days to ensure that you have a solid foundation for successful execution of your IBOR transition strategy.…
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Key Points for the Loans Market and Linked Derivatives Hedging Arrangements
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As the deadline for the transition away from IBORs fast approaches, our global focus on the loans market and derivatives continues to help participants in the loans and derivatives markets ready themselves for the changes to alternative risk-free rates. Mayer Brown partners Ed Parker, Trevor Borthwick, Ash McDermott and David Duffee, and senior ass…
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The SEC OCIE Examination: A Practical Guide to Achieving "LIBOR Transition Preparedness"
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Mayer Brown’s Marlon Paz and Leslie Cruz and Morae’s Heidi Rudolph discuss their views on the focus of the OCIE announcement, specific and practical actions that affected organisations need to take to achieve “preparedness” and how organisations can start to build a programmatic approach to responding to the OCIE’s announcement.…
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Are you Prepared for the LIBOR Sunset?
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Mayer Brown partner Paul Forrester and Joy Saphla, President, Strategic Solutions from Morae discuss the broader landscape as well as sharing insight into the collaboration between Morae Global and Mayer Brown.Oleh Mayer Brown
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Key Points for Derivatives, Structured Finance and Loan Hedging
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Mayer Brown partners Ed Parker and Patrick Scholl, counsel Nanak Keswani and Bradley Berman, and senior associate Emma Khoo for a discussion that will cover the latest market updates on IBOR replacement, transition from EONIA under ISDA and DRV, issues and considerations for other structured products in the United States, including CMS rate-linked …
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Proposed US Federal Tax Regulations
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On October 8, 2019, the US Internal Revenue Service released proposed regulations addressing the US federal tax consequences of replacing an interbank offered rate (IBOR) with a successor rate. The proposed regulations generally provide the circumstances in which the replacement of an IBOR with a fallback rate, or an addition of a fallback mechanic…
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The expected phase-out of LIBOR will affect trillions of dollars in investments across a wide range of financial products. The market has been working to adapt new transactions to a post-LIBOR world, but legacy transactions will also be affected. Whether and how those contracts can be modified to account for the unavailability of LIBOR - and how co…
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