SFNet will host a webinar tomorrow, May 21, from 12:00 p.m. – 1:00 p.m., EDT titled "Navigating the End of LIBOR: Recent Developments and Market Updates." This webinar is free for employees of SFNet member organizations and $95 for non SFNet members. 

As we approach December 31, 2021, the financial markets are closer to the end of LIBOR for most currency and tenor settings. This webinar will provide important updates regarding LIBOR transition, including the extension of U.S. Dollar LIBOR for the dominant tenors to June 30, 2023, developments on SOFR and other overnight RFRs to replace IBOR rates and the emergence of certain “credit sensitive rates.” Panelists will also discuss recent developments impacting fallback provisions in documentation, including for business loans and derivatives, as well as the status of the New York State and Federal LIBOR discontinuation legislation.

Panelists will include:

Kim Desmarais, Partner, Jones Day, Financial Markets Practice
Jason Jurgens, Partner, Jones Day, Financial Markets Practice
Locke McMurray, Partner, Jones Day, Financial Markets Practice
Anthony Bulic, Senior Vice President, Securitization, Hedging & Analytics, KeyBank

Business leaders, BDOs, portfolio managers and attorneys practicing in the areas of banking, lending, derivatives, financial markets and financial regulation are strongly encouraged to attend.

“In less than seven short months, LIBOR will largely end because the regulated banking sector will no longer be able to lend or borrow on LIBOR index financial assets after December 31, 2021,” explained Anthony Bulic, KeyBank.  “That would indicate that the transition is starting now.  Expectations need to be reset.  Banks, per guidance from their regulators, will begin pivoting out of LIBOR soon and by the fall, largely offering SOFR or alternative benchmark pricing.”

“We are getting increased clarity nearly on a daily basis,” added Locke McMurray, Jones Day. “But that doesn’t stop the questions and innovations from developing at an ever-faster pace.”

The webinar will begin with a discussion around the March 5th FCA and IBA Announcements regarding LIBOR cessation and representativeness, and the impact of these announcements on fallback provisions in syndicated and bilateral business loans and in derivative products.

“Market participants need to have insight into and understand their portfolio of contract fallback language,” Bulic added. “In most legacy commercial contracts, LIBOR cannot simply be swapped into SOFR without adjustments to pricing and conventions.”

Panelists will also look at The Alternative References Rates Committee (ARRC) recommended fallback language for syndicated and bilateral business loans that was updated on March 25^th. More information on that can be found here.

Recent market developments to hardwire in replacement reference rates for other LIBOR currencies, including GBP Sterling and Euro, will also be discussed, along with recent developments for Credit Sensitive Rates.

“Another topic on the agenda we’ll discuss is Legislation Fixes for Legacy Contracts,” explained Jones Day’s Jason Jurgens.  “New York State enacted a LIBOR transition law. Congress is working on one, too.  It’s important to understand what the legislative solutions contemplate and how they will impact the market, as well as their key limitations. If you feel like you’re behind and need to catch up on the issues that are top-of-mind for the industry, this LIBOR webinar is for you.”

To register, please click here.