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Industry News

FFIEC Announces Increase to Focus on LIBOR Transition Preparedness

On Wednesday, July 1, the Federal Financial Institutions Examination Council (FFIEC) released a statement indicating that the institution, consisting of the Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and CFPB, will be taking an increased focus on transitioning away from LIBOR.

Industry News

ARRC Releases Several Key Updates Relating to LIBOR Transition

This week the Alternative Reference Rates Committee (ARRC) released several key updates related to the transition away from LIBOR.

Industry News

FCA Granted Further Abilities Regarding LIBOR Transition

UK regulators will be granted more power regarding their efforts to transition markets away from LIBOR.

SFA News

SFA Submits Supplemental Spread Adjustment Consultation to the ARRC

On Monday, June 15, SFA submitted a response to the Alternative Reference Rates Committee (ARRC) regarding their supplemental consultation on spread adjustment methodologies for fallback language in cash products referencing LIBOR.

SFA News

Structured Finance Association Applauds CFPB Efforts to Facilitate LIBOR Transition

The Structured Finance Association today applauded steps taken by the Consumer Financial Protection Bureau (CFPB) to facilitate the transition away from the London Inter-Bank Offered Rate (LIBOR), the benchmark index currently used to determine the interest rate that consumers pay on some credit cards, home equity lines of credit, reverse mortgages, and private student loans, which is expected to be discontinued after 2021.

Industry News

U.K. Banks Call for Legislative Solution to LIBOR

Last Friday, the Bank of England’s “Working Group on Sterling Risk-Free Reference Rates” (Task Force) released a working paper advocating for the British government to pass legislation that would address the legacy contract issue arguing, “it would bring about international consistency in the treatment of tough legacy contracts.”

SFA News

The LIBOR-SOFR Transition Continues Apace

While the fight against COVID-19 rightfully demands the attention of our industry, it is important we not lose sight of the transition away from LIBOR. At the Structured Finance Association, we are helping manage this transition and today launch a series of LIBOR pieces by our in-house industry experts.

SFA News

SFA publishes blog on LIBOR transition

This week, SFA released a blog post highlighting the current status of transitioning from LIBOR to the Secured Overnight Financing Rate (SOFR). The blog notes that despite the COVID-19 pandemic, real progress has been made towards transitioning away from LIBOR including (1) accounting relief from the Financial Accounting Standards Board (FASB) and (2) the GSEs announcement of the first SOFR-based consumer loan product.

Industry News

Small banks could derail LIBOR transition

Small banks are forced to put LIBOR transitions on hold due to the coronavirus liquidity crunch, throwing off plans to switch the market to new risk-free rates by the end of 2021. While larger banks have transition teams, smaller firms have to divert resources during economic panics, and have trouble completing transition work on time.

Industry News

Fed decides not to use stimulus aid to push LIBOR transition

The Federal Reserve has decided not to use the $600 billion aid for small and midsize businesses to promote the replacement for the London interbank offered rate (LIBOR) which is being transitioned out in 2021. The recent action highlights some of the challenges many industry participants are facing in regards to transitioning to a new short-term interest rate.