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Sponsored by Lorman Education
Product ID: 406188EAU
 
Credit & Course Provided by:

Replacing LIBOR: The End of the World's Most Important Number

OnDemand Webinar (84 minutes)

Gain a better understanding of how LIBOR met its timely end and how market participants should prepare for the 2021 decommission of the prominent benchmark.The London Interbank Offered Rate (LIBOR) is an interest rate benchmark used in transactions valued in the trillions of U.S. Dollars. The LIBOR rate is scheduled to be no longer available starting in calendar year 2022. The loss of the benchmark requires bankers and lawyers to understand how this will affect existing transaction documentation as well as the proposals to address the loss of LIBOR in documentation for new transactions.

Authors

Ronald Scheinberg, Vedder Price

Agenda

How Is LIBOR Used?

• Theory of Bank Finance

• LIBOR as a Benchmark

What Is LIBOR?

• History

• ICE

• Scandals

• Impending Demise

How Is LIBOR Determined?

• Reference Banks

• ICE

• Payment Conventions

The Ubiquity of LIBOR

The End of LIBOR

The Rise of SOFR

• The U.S. Fed

• The AARC

• The LSTA

Problems With SOFR

• Overnight Secured Rate (vs. Cost of Funds)

• Lack of Substance/Conventions

• No Match Funding

Transition Issues

• LSTA Approaches

• Other Approaches

• Current Technology

• Existing Contracts With No Failsafe

• Sample Language