House Financial Services Committee Advances LIBOR Act

The U.S. House Committee on Financial Services voted to advance H.R. 4616 (including a technical amendment), the “Adjustable Interest Rate (LIBOR) Act of 2021,” which would establish a process for replacing LIBOR with the Secured Overnight Financing Rate (“SOFR”) in financial contracts that do not contain sufficient fallback provisions upon the cessation of LIBOR. The Act would (i) direct the Federal Reserve Board (“FRB”) to issue rulemakings necessary to adjust SOFR for each category of LIBOR contract […]

By | July 5th, 2021 ||

With The Current Pandemic, What Next For Capital Markets?

Covid-19 had an immediate impact on all business sectors around the world. Some have thrived, but the majority have been adversely affected. What have been the most pressing challenges for capital markets?

While the damage caused by the pandemic isn’t confined to select pockets of businesses, it’s clear that some have suffered the most and continue to suffer – with aviation, retail, hospitality, financial services, real estate and automotive some of the hardest hit.

On the […]

By | September 16th, 2020 ||

SOFR Loan Documentation: 8 Things For Borrowers To Think About

Bankers, lawyers and others involved in the loan market’s transition from LIBOR to another reference rate have spent much of the past two years thinking about and drafting fallback provisions—the section of a loan agreement that describes what happens if LIBOR is not available. Now that the likely disappearance of LIBOR is less than a year and a half away, and the Alternative Reference Rates Committee (ARRC) has identified the Secured Overnight Financing Rate […]

By | September 10th, 2020 ||