Update on LIBOR Phase-Out
The panel informed and updated attendees as to issues surrounding the phaseout of LIBOR anticipated to occur at the end of 2021. The panel provided a brief background on the LIBOR phaseout and then discussed the likely alternate reference rate substitutes for LIBOR, including in particular the Secured Overnight Financing Rate (SOFR) and thoughts concerning adjustments to SOFR that may be necessary to minimize value transfers. The panel also explored language suggested for legal documents in anticipation of the LIBOR phaseout. This included descriptions, as well as pluses and minuses, of language published by the Alternate Reference Rate Committee (ARRC) as well as an update on ISDA initiatives for purposes of swap documentation. Lastly, the panel explored the implications and potential consequences, as to "legacy" transactions that are already in place, in the event that parties are unable to agree upon a successor rate index.
Panel Chair: E. Tyler Smith, Parker Poe Adams & Bernstein LLP, Greenville, SC
Readie Callahan, Wells Fargo, San Francisco, CA
Barry M. Rothchild, Nixon Peabody LLP, New York, NY
Jay Saunders, KPM Financial, LLC, Charlotte, NC
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