Read the latest articles and press releases about securitization and structured finance.


SFA Submits Comments to Treasury and IRS on LIBOR Transition

On November 25, SFA submitted comments to the IRS and Treasury regarding their proposed Guidance on the Transition from Interbank Offered Rates to Other Reference Rates. The proposal provides guidance on the tax consequences of the transition to the use of reference rates other than interbank offered rates (IBORs) in debt instruments and non-debt contracts.

Treasury Secretary States Libor Transition May Need Help From Congress

At the House Financial Services Committee hearing on Thursday, December 5, Treasury Secretary Steve Mnuchin told lawmakers that the Treasury may need legislative help from Congress in ushering through the transition to the new interest rate benchmark.

Libor Transition Causes Stress for CME Eurodollar Market

Eurodollar futures, where nearly $3 trillion changes hands every day, are preparing for the end of Libor – the biggest shake-up they have had since they were introduced on the Chicago Mercantile Exchange (CME) in 1981.

CME Group Inc. Proposes a Plan for Converting Eurodollars Ahead of Libor Transition

On Tuesday, November 12, officials at CME Group Inc. proposed a plan to convert eurodollar futures and options to other derivatives linked to an alternative benchmark called the Secured Overnight Financing Rate (SOFR).

FDIC Chairman McWilliams Discussed the Repo Market, Libor, and Farm Loans

In a recent interview with MarketWatch, Federal Deposit Insurance Corporation (FDIC) Chairman Jelena McWilliams discussed the repo market, Libor benchmark transition, and the farm sector’s effect on banks.

SOFR Takes Next Step in Libor Replacement

The New York Fed and the Treasury Department have proposed publishing compounded SOFR averages that would create benchmarks at 30, 90, and 180 days. Comments on these proposed plans are due December 4th.

Questions Arise Regarding Libor Transition as Turmoil Increases in Short-Term Money Markets

This October, issuance of the Secured Overnight Finance Rate (SOFR), Libor’s planned replacement, dropped to $24.5 billion compared to August’s $56.1 billion total issuance.

Experts Debate the Potential for Financial Instability During the Libor Transition

Several experts have raised concern about financial stability issues as the market transitions from Libor, the current interest rate benchmark.

CME Changes Date for Libor Transition and Keeps Potential “Big Bang” a Possibility

U.S. central counterparty clearing house CME has confirmed that they will readjust their date for a transition from Libor to SOFR to be in alignment with the London-based LCH.

Hong Kong Looking into SOFR-Based Proxy as Term Structure Fix

Hong Kong’s exchange operator plans to develop a term structure based on the Secured Overnight Financing Rate (SOFR) for the market’s local risk-free rate.