The Alternative Reference Rates Committee (ARRC) is set to release fallback language next week that would prescribe how Libor-linked securitizations would adopt an alternative benchmark in the absence of the traditional inter-bank rate. Fallback language is designed for market participants who want to continue using Libor in new contracts but can have a legally prescribed mandate if Libor ceases to be quoted after 2021. Fallbacks for floating rate notes and syndicated loans were published in April. Lary Stromfeld, a partner ...
Leveraged Loan is expected to release fallback language for dollar LIBOR-linked securitisation issues next week, according to a panel of experts at IMN’s ARRC and CLO conference in New York.