Jones Day's 2021 Speaker Series: The End Is (Still) Near, but the Path to the End Continues to Change: The Current State of the LIBOR Transition (June 2021)
The End Is (Still) Near, but the Path to the End Continues to Change
The Current State of the LIBOR Transition (June 2021 Edition)
The lawyers of Jones Day invite you to a webinar discussing the current state of the London InterBank Offered Rate (LIBOR). The landscape has shifted dramatically since the March 5, 2021, announcement and continues to evolve on a near-daily basis:
- The cessation date for the principal tenors of U.S. dollar (USD) LIBOR (one-month, three-month, six-month) has been extended to mid-2023.
- All other LIBOR currency-tenor pairs (including one-week and two-month USD LIBOR) will definitively cease to be published at year-end 2021.
- U.S. regulators have suggested that origination of USD LIBOR instruments after year-end 2021 will potentially have "safety and soundness" repercussions.
- The foregoing announcement also had the effect of "fixing" the tenor-specific credit spread adjustments to be added to the Secured Overnight Financing Rate (SOFR).
- The International Swaps and Derivatives Association (ISDA) has inserted robust "fallback" provisions into its definitions book, effective January 25, and has also published a "protocol" to permit retroactive amendments of swaps with amenable counterparties.
- USD cash markets continue to experiment with various SOFR-oriented approaches (e.g., "daily simple" SOFR and compounded SOFR in advance), as well as newly emerging "credit-sensitive" term rates and even potentially "Term SOFR."
- Most importantly, perhaps, New York has enacted legislation that will transition financial instruments from LIBOR to the product-specific rates recommended by the Alternative Reference Rates Committee (ARRC); similar legislation has been introduced in Congress.
In this presentation, Jones Day's LIBOR transition team will demystify these developments, enabling attendees to come away with a sense of what is certain for LIBOR cessation and what remains to be seen.
We hope you will be able to join us for this informative program.
Registration & CLE Credit:
This program has been approved for 1.00 hour of general credit by the State Bar of California and 1.00 hour of areas of professional practice credit (including transitional credit) by the New York State CLE Board. This program has also been approved for 1.00 hour of general distance learning credit by the Pennsylvania CLE Board. Jones Day is a State Bar of California MCLE approved provider, as well as an accredited provider in New York, and a Pennsylvania CLE Board distance learning accredited provider. Application for CLE credit in other states will be made as needed, subject to state CLE regulations.