A legislative fix could eliminate the need to amend legacy documentation for CLOs after LIBOR is phased out, according to an adviser to SOFR. ARRC, which is overseeing the transition from LIBOR, may ask New York legislators to intervene, said David Bowman, special adviser to the Fed's Board of Governors. As most US securities transactions are subject to New York law, it could be beneficial to pass legislation defining LIBOR as the Federal Reserve plus a spread, he told the Structured Finance Industry Conference in Las Vegas.
A legislative fix could eliminate the need to amend legacy documentation for CLOs after LIBOR is phased out, according to an adviser to the Federal Reserve. ARRC, which is overseeing the transition from LIBOR, may ask New York legislators to intervene, said David Bowman, special adviser to the Fed's Board of Governors. As most US securities transactions are subject to New York law, it could be beneficial to pass legislation defining LIBOR as SOFR plus a spread, he told the Structured Finance Industry Conference in Las Vegas.