Practicalities of the LIBOR Transition

Chatham's update on the GBP LIBOR transition, summarizing upcoming deadlines, recent news, and available resources to help you stay current as the market transitions away from LIBOR.

Chatham's update on the LIBOR transition, summarizing upcoming deadlines, recent news, and resources to help you stay current as the market transitions away from LIBOR.

Each month, our team reviews and discusses the current state of USD LIBOR and SOFR markets, exploring the performance of the indexes as well as the borrowing and derivatives markets around them.

Each month, our team discusses the current state of GBP LIBOR and SONIA markets, exploring both the performance of the rates as well as the borrowing and hedging markets that surround them.

On Friday, October 23, the International Swaps and Derivatives Association (ISDA) launched the IBOR Fallbacks Supplement and Protocol, which provides a framework for transitioning interest rate derivatives from USD LIBOR to SOFR.

These frequently asked questions address some of the common issues that commercial real estate borrowers face when considering an interest rate swap. These include swap rates and mechanics, prepayment/breakage, documentation, and LIBOR transition.

LIBOR transition continues with the announcement of ISDA’s protocol release date, updated language from the ARRC for bilateral business loans, and possible amendments to the EU Benchmarks Regulation to help ease the transition.

In connection with the U.S. market’s transition from LIBOR to SOFR, Chatham has updated our SOFR forward curve by extending it from five years to 30 years. This piece explains the nature of that update, the reasons for it, and what may be in store for forward-looking term SOFR.