LIBOR transition enters crunch time in 2021

Matthew Tevis discusses the LIBOR transition with ABA Banking Journal and highlights what financial institutions are doing to prepare for this market shift.

The transition from LIBOR is quickly approaching, and the market is evolving daily. Many financial institutions are looking for guidance to better prepare their organizations. We put together answers to many commonly asked questions that involve LIBOR-based derivatives.

On March 5, 2021, the ICE Benchmark Administration Limited (IBA), the administrator of the London Interbank Offered Rate (LIBOR), released the results of its consultation on the cessation timeline for certain LIBOR tenors. In coordination with the IBA, the United Kingdom’s Financial Conduct...

In this Elvis-inspired session for the New Jersey Bankers Association, Bob Newman and Todd Cuppia discuss the scheduled phaseout of LIBOR at the end of 2021, identify the roles and impact of key players apart of this transition, and discuss what banks need to start doing to prepare.

Our friends from The Kafafian Group sat down with Matt Tevis and Kim Johnston from Chatham to discuss the transition away from LIBOR, various alternatives including SOFR, and how community banks can best prepare.

In a busy week filled with corporate earnings releases, high-profile economic data updates, and the latest FOMC monetary policy meeting, the major U.S. equity indices and long-term Treasury yields drifted lower to end the month.

Despite a sharp selloff to start the week, the three major U.S. equity indices recovered to finish the week higher, each setting new all-time highs, as market participants focused on a strong start to the corporate earnings season and shrugged off mostly weaker-than-expected economic data and renewed fears of the COVID-19 delta variant.

The major U.S. equity indices moved lower for the week, snapping a three-week winning streak, as investors turned their attention to a slew of economic data updates and Federal Reserve Chair Powell’s semi-annual testimonies before Congress.

Eri Panoti spoke to Bloomberg Tax about how the FASB's new rule proposal could make financial institutions' interest rate risk management easier by expanding common accounting techniques that qualify for hedge accounting.

Despite the recent rise in COVID-19 cases linked to the delta variant and weaker-than-expected economic data, the major U.S. equity indices extended their run last week, setting new all-time highs, while long-term Treasury yields continued their drift lower, falling to multi-month lows.

The major U.S. equity indices continued their march higher last week with the S&P 500 and Nasdaq Composite Indices ending the week at all-time highs as generally favorable economic data outweighed concerns of a new surge of COVID-19 delta variant cases in the U.S.

Many financial institutions have excess liquidity due to the global pandemic and resulting economic stimulus. Management can deploy this liquidity into new loan originations or the investment portfolio. Although bond returns are better than cash, a more attractive return may be provided from mortgage loans.

As financial institutions continue to search for opportunities for more earnings in this low-rate environment, it is important to consider the value of adding derivatives to your strategy. Ben Lewis discussed this and more with C. Myers in a recent podcast.