This post was updated on January 22, 2021. MVA Financial Services Counsel Ed Ivey‘s article titled “Election Season Special: 2021 Candidates for LIBOR Replacement” was recently published in the Futures & Derivatives Law Report, a Thomson Reuters publication. The article provides an overview and analysis regarding the various non-SOFR alternative reference rates, such as Ameribor, and issues related to the chances such rates have at being adopted and widely used in the market.
Get excited. The next big election season is about to kick-off. The London Inter- bank Offered Rate (“LIBOR”) is going away, and despite the impact COVID-19 has had on the global market, the United Kingdom’s Financial Conduct Authority, with the support of the U.S. Federal Reserve, continues to stay committed to transitioning the market away from new LIBOR contracts by December 31, 2021. This sentiment was reaffirmed more recently following the announcement by the ICE Benchmark Administration (“IBA”), the administrator of LIBOR, that the IBA will consult on its intention to cease publication of the one-week and two-month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023.
The complete article can be viewed here.
You can also read Ed Ivey’s previous article titled Bilateral Loans and Hedging the LIBOR to SOFR Transition, which was published in the October 2019 Futures & Derivatives Law Report.
Ed Ivey serves as Counsel in Moore & Van Allen’s Financial Services group. Building from his experience in New York City and time at multiple Wall Street banks, he is now a go-to attorney for transactional and regulatory issues associated with derivatives, complex finance, structured products and LIBOR transition issues. His practice is focused on swaps, derivatives, general corporate matters, and advising clients on various types of debt and equity capital market activities (e.g., security private placements, loans and revolving credit facilities). View Mr. Ivey’s full bio.