The era of risk-free rates has begun and the era of interbank offered rates (and this blog) is ending.
The key LIBOR rates, other than USD LIBOR, are long retired. USD LIBOR continues to exist only as a synthetic rate
A New Beginning … And an Ending
Latest from Eye on IBOR Transition
Fannie and Freddie Confirm Choice of SOFR as Replacement for LIBOR in Existing Mortgage Loans
Fannie Mae and Freddie Mac recently provided additional details of the necessary changes to outstanding adjustable-rate mortgage loans that currently are linked to LIBOR indices. As expected, these changes largely mirror the changes mandated in the recently enacted Adjustable Interest
LIBOR Lapse Looms Large
Attention Loan Market Participants: There are fewer than 145 days until US dollar LIBOR no longer is published on a representative basis. While some segments of the market are well advanced in transitioning from the London InterBank Offered Rate to
Fed Adopts Final Rule Implementing the Adjustable Interest Rate (LIBOR) Act
On December 16, 2022, the Board of Governors of the Federal Reserve System adopted final rule 12 C.F.R. Part 253, “Regulation Implementing the Adjustable Interest Rate (LIBOR) Act (Regulation ZZ)” (“Rule 253” or the “Final Rule”). Rule 253 identifies SOFR-based
Thankful for Increasing Clarity on LIBOR’s Final Fate
As we await the Federal Reserve Board to finalize the LIBOR transition regulations set forth in its notice of proposed rulemaking – Regulation Implementing the Adjustable Interest Rate (LIBOR) Act,[1] we are grateful[2] that on 23 November
Switching to SOFR: Proposed Rule Published to Implement the 2022 Federal LIBOR Act
On 19 July 2022, the Federal Reserve Board (the “Board”) published a notice of proposed rulemaking – Regulation Implementing the Adjustable Interest Rate (LIBOR) Act, as it was required to do by Section 110[1] of the Adjustable Interest
No foolin’: USD LIBOR to sunset one year from today
Market participants have been warned not to kid themselves. The last remaining settings of the London InterBank Offered Rate—those relating to select US Dollar tenors—are scheduled to become unavailable following publication on 30 June 2023. After this final USD LIBOR
LIBOR Phase Out – Tax Implications in the Context of Related-Party Loans
As market participants evaluate their loan portfolios and implement strategies to transition away from the London Interbank Offered Rate (“LIBOR”), they must address not only third-party loans, but related-party loans as well.
Consolidated Appropriations Act Advances Federal LIBOR Transition Solution
With the inclusion of the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) as Division U of H.R. 2471, Consolidated Appropriations Act, 2022 (the “Appropriations Act”) passed by the U.S. House of Representatives on 9 March 2022 and the Senate
US IRS Releases Final Regulations Addressing IBOR Transition
On 30 December 2021, the U.S. Internal Revenue Service (IRS) published final regulations for IBOR transition. Our 7 January 2022 Legal Update provides background on the principle U.S. federal income tax concern with IBOR-related amendments to existing contracts, an overview