THOUGHT LEADERSHIP

View all of our IBOR transition thought leadership under the Perspectives tab of our IBOR Transition portal page. Our Eye on IBOR Transition blog, with three years of our analysis and commentary during the key transition years, has been retired but remains available for future reference.

NEWS AND DEVELOPMENTS

United States – Syndicated and Bilateral Loans

LIBOR Transition: One (Two?) Last Hurrah(s)
Loan Syndications & Trading Association, 13 September 2023
Providing loan transition data and encouraging lenders to detail the values of the various components in the new benchmark rate.

United States – General

ARRC Releases Final Reflections and Announces its Conclusion Following a Successful Transition
Alternative Reference Rates Committee, 30 November 2023
The ARRC notes that while the ARRC will wind down, the New York Fed plans to launch a new sponsored group in 2024 to focus on promoting the integrity, efficiency, and resiliency in use of reference rates across financial markets.

ARRC Closing Report: Final Reflections on the Transition from LIBOR
Alternative Reference Rates Committee, 30 November 2023
The ARRC has published a concluding report to provide a historical summary and emphasize the three areas that it believes firms should focus on going forward in order to preserve the robust system of reference rates that has been achieved: (a) active review of any reference rates that firms may consider using to ensure that they are sufficiently robust and fit for purpose; (b) the importance of appropriate fallback language for any contractual use of reference rates; and (c) maintaining an appropriate balance between use of SOFR and Term SOFR.

Index Announcement - Future Cessation of the Bloomberg Short-Term Bank Yield Index ("BSBY")
Bloomberg Professional Services, 15 November 2023
Following a review of feedback received to its 13 September 2023 consultation on the cessation of publication of the Bloomberg Short-Term Bank Yield Index (BSBY), Bloomberg Index Services announced that the publication of all tenors of BSBY will cease permanently after publication on Friday, 15 November 2024.

ARRC November 8 Meeting Readout
Alternative Reference Rates Committee, 8 November 2023
At this final meeting, the ARRC members reviewed their closing report and noted that its best practice recommendations regarding reference rates remain firmly in place going forward to help preserve the robust system of reference rates that has been achieved.

ARRC September 26 Meeting Readout
Alternative Reference Rates Committee, 26 September 2023
The Operations/Infrastructure Working Group reported that usage of the DTCC LIBOR Replacement Index Communication Tool has been smooth. The Regulatory Issues Working Group reported that it formally filed a request for Pre-Trade Mid Mark relief with the CFTC to extend the relief currently afforded to certain swaps referencing USD LIBOR to the swap market's predominant reference rate, SOFR OIS. The request is under review.

Consultation on the Proposed Cessation of the Bloomberg Short-Term Bank Yield Index ("BSBY")
Bloomberg Professional Services, 13 September 2023
Because BSBY's usage within financial products is limited and unlikely to see significant growth, resulting in insufficient usage of the benchmark, Bloomberg Index Services proposes to cease publication of all tenors of BSBY after publication on 15 November 2024, and seeks market feedback and information regarding outstanding instruments linked to the rate.

IBOR Transition Digest - January 18, 2024

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