Podcasts about alternative reference rates committee

In this special edition of the Reorg Americas Core Credit Podcast, the Loan Syndications and Trading Association's Meredith Coffey, also a member of the Federal Reserve's Alternative Reference Rates Committee, discusses the transition to SOFR with Reorg's head of primary, James Holloway. The conversation comes as about $4 trillion of leveraged loans are due to transition from Libor by the end of June 2023. Reorg's Sept. 16 article highlighted the efforts by some lenders to push back against the efforts of borrowers to switch to SOFR without according them a credit spread adjustment.

LIBOR is set to be discontinued by the end of this year, and it's important that corporates are ready for the transition. Libor is written into over 220 trillion dollars in contracts around the world. Most of those are set to mature before mid-2023. That being said, the Alternative Reference Rates Committee has estimated that about a third won't mature by that timeframe. In this edition of the AFP Conversations Podcast, Tom Hunt director of Treasury and Payments Services at AFP, speaks with Nathaniel Wuerffel, a Senior Vice President in the Markets Group of the Federal Reserve Bank of New York and Deputy Head of MOMA—the open market trading desk—for Domestic Markets. Listen in as Nathaniel recommends actions you can take both before year-end and before mid-2023.

LIBOR has been at the forefront of our attention since 2012, when it was revealed that financial institutions were manipulating the rate for their own gain. The UK Financial Conduct Authority is set to discontinue LIBOR by the end of 2021, and it's important we are ready for the transition. In this edition of the AFP Conversations Podcast, Tom Hunt, director of Treasury and Payments Services at AFP, speaks with David Bowman, senior associate director at the Board of Governors of the Federal Reserve System. Bowman serves as the Board's senior staff liaison to the Alternative Reference Rates Committee. In this episode, Bowman provides an update on the status of the LIBOR transition, what needs to be done before year end, and advice for corporates approaching their banks about rate alternatives. This episode expresses personal opinions that do not necessarily reflect those of the Federal Reserve.

Reference rate reform is happening. LIBOR is out the door, to be replaced by SOFR. To discuss this significant transition, Weaver Beyond the Numbers Real Estate Edition hosts Howard Altshuler, Partner-in-Charge, Real Estate Services and Rob Nowak, Partner, Tax Services spoke with their colleague Bruce Zaret, Partner, Risk Advisory Services.So, why is LIBOR out? Zaret explained that, “in the 2008 financial crisis, there was a lot of reliance on LIBOR, but it's a rate that can be altered or manipulated. SOFR should bring more stability since it's based predominately on repo transactions.”While LIBOR was forward-looking, Zaret noted that the new rate SOFR is more transactional and looks at an average over time. It's also based on actual data, and banks can set a cap so that it's not too volatile. “We expect it to be more reliable and predictable. It's not based on future projections that are more prone to speculation and basically a group's opinion,” he added.The holder of this data will be the Alternative Reference Rates Committee, which includes primarily private organizations in the financial sector. They will dictate the rollout of the rate. LIBOR is expected to sunset at the end of 2021, but Zaret mentioned that it may be pushed out to 2023 because people aren't prepared for it.On the implications, Zaret said that, “looking at it from a contractual perspective, it may require more collateral. You could have gains or losses, but it will impact the overall financial structure. For banks, it will change the products they offer. There may be a difference in rate during the transition period.”

With hundreds of trillions of dollars in derivatives, bonds, loans and mortgages linked to LIBOR, shifting to alternative rates is one of the biggest structural changes financial markets have ever faced. In this episode, Frances Hinden, vice president for treasury operations at Shell and vice chair of the Working Group on Sterling Risk-Free Reference Rates, and Tom Wipf, vice chairman of institutional securities at Morgan Stanley and chairman of the Alternative Reference Rates Committee, describe what firms need to do and the major milestones that must be met to ensure a smooth transition. See acast.com/privacy for privacy and opt-out information.

Libor is going away in 2021 and treasury and finance executives are slowly making preparations. One item on their to-do list is fallback language. That’s the wording to indicate the rate that corporates would… fall back on in the event a Libor-related loan is still around after Libor sunsets at the end of 2021. Fortunately for finance executives, the Alternative Reference Rates Committee, which is overseeing the transition from Libor in the U.S., recently released its recommended Libor fallback language. Even so, implementing fallback language – and preparing for a world without Libor – is no slam dunk. On this episode of AFP Conversations, Meredith Coffey provides insights on what financial professionals need to do to prepare. Coffey is Executive Vice President of the Loan Syndications and Trading Association where she runs the research department and co-heads the LSTA’s regulatory efforts to help facilitate continued availability of credit and efficiency in the loan market. She is also a member of the Alternative Reference Rates Committee, or ARRC, she co-chairs the ARRC’s Business Loans Working Group, and she has testified several times before Congress about loan markets. AFP 2019, this October in Boston, is where treasury and finance professionals separate the hype from the reality. Visit www.afp2019.org/register to sign up and use discount code PODCASTAFP2019 at checkout to save $100.

With the London Interbank Offered Rate — which underpins more than $350 trillion in mortgages, commercial loans, bonds and derivatives worldwide, including $200 trillion in U.S. dollar-denominated financial instruments — not guaranteed to be sustained after 2021, what should banks be doing now to prepare for a transition away from the widely used benchmark? On the latest episode of the ABA Banking Journal Podcast, Federal Reserve official David Bowman and ABA staff expert Hu Benton discuss: Need-to-know background on why Libor has become unsustainable as a benchmark rate Why the Alternative Reference Rates Committee selected the Secured Overnight Funding Rate, or SOFR, as its preferred alternative What bankers need to know about how SOFR behaves differently from Libor and why they will need time to get used to it The urgency of reviewing bank portfolios to ensure contracts contain fallback language should Libor cease permanently Supervisory expectations regarding SOFR use and planning for the Libor transition How bankers can get involved in the ARRC’s public consultation process on the transition and learn more

 Josh Galper is the managing principal of Finadium, an independent consultancy in capital markets with unique expertise in securities, finance, collateral, and derivatives. He joins the show today to talk about money markets, overnight interest rates, and some of the big issues in this area. David and Josh also discuss the Lehman Brothers collapse, the “Narrow Bank,” and what we should know about key interest rates; namely the repo rate, LIBOR, interest on excess reserves rate, and SOFR.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12072018/plumbing-monetary-policy   Josh’s Twitter: @Finadium Josh’s Finadium profile: https://finadium.com/josh-galper-mba/   Related Links:   Finadium’s homepage: http://finadium.com   Finadium’s magazine: http://securitiesfinancemonitor.com   *Second Report of the Alternative Reference Rates Committee* by the New York Fed https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2018/ARRC-Second-report   *The SOFR Transition: Benchmarks, Futures, and P&L* by Finadium https://finadium.com/finadium-report-desc/sofr-transition-benchmarks-futures-profit-loss/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

$200 trillion of financial contracts and securities are tied to LIBOR and that matters to everyone – small businesses, corporations, banks, dealers and investors. At SIFMA's 2018 Annual Meeting, Sandie O’Connor and David Bowman discuss how the Alternative Reference Rates Committee of the Federal Reserve - known as ARRC - is leading the U.S. transition the Secured Overnight Financing Rate, or SOFR. Sandie is the Chief Regulatory Affairs Officer for JPMorgan Chase & Co. and chair of the ARRC. She also serves on SIFMA’s Board of Directors and is chair of our global affiliate, GFMA. David is a senior advisor at the Board of Governors of the Federal Reserve System and is the senior staff liaison to the ARRC. Their conversation is moderated by Randy Snook.