Consultation on credit adjustment spread methodologies for fallbacks in GBP LIBOR cash products
The Working Group on Sterling Risk-Free Reference Rates has published a consultation on credit adjustment spread methodologies for fallbacks in cash products referencing GBP LIBOR. This is part of the Working Group's efforts to enable a transition to SONIA (the sterling risk-free rate) from sterling LIBOR. Whilst the consultation paper is focused on SONIA and the sterling market, the credit adjustment spread methodologies discussed in it are also of key importance and relevance for the transition to risk-free rates in other currencies.
Feedback
is requested on the consultation paper by 6 February 2020.
An introduction to the LMA Exposure Drafts of Compounded Risk-Free Rate Facility Agreements
This webinar provides an introduction to the Exposure Drafts and discusses: i) the context for, and the purpose of, the development of the Exposure Drafts; ii) the principal features of the Exposure Drafts; and iii) key differences between the Exposure Drafts and the existing LMA Primary Documents.
An introduction to the LMA exposure draft Reference Rate Selection Agreement
This webinar provides an introduction to the exposure draft Reference Rate Selection Agreement and discusses: (i) the purpose of the Reference Rate Selection Agreement and the approach taken in it to the amendment process for transitioning legacy transactions away from LIBOR; (ii) the principal features of the Reference Rate Selection Agreement; and (iii) the interaction with the Exposure Draft Compounded RFR Facility Agreements
Desktop Series
The LMA, with collaboration from the Loan Servicing sub-committee, has produced three new desktop series guides. The desktop series act as operational guides for teams to refer to when carrying out their day-to-day activities. All ten guides are listed below:
DS1 - Types of facility in the syndicated loan market
DS2 - Agent freezes
DS3 - Re-denominations
DS4 - Letter of credit issuance
DS5 - Fees
DS6 - Prepayments
DS7 - Breaks
DS8 - Rollovers
DS9 - Drawdowns
DS10 - Repayments
Brexit and LMA Documentation Update
The LMA is aware of the publication of the UK's legislation
which is intended to "onshore" EU law
in the event that the UK leaves the EU without an agreed transition
period. As is the case with any potential change in legislation, the LMA is not
planning to make any changes to its English law documentation before any
proposed change in English law actually takes effect.
The LMA is in the process of considering appropriate changes
to be made to the relevant legislative references in its documentation in the
event that the UK's onshoring legislation becomes effective. The LMA's
intention is to publish a table of those suggested changes as soon as possible
if the UK's onshoring legislation becomes effective, so as to release them to
members as soon as possible. Those changes will then be incorporated into its
documentation suite over the following weeks.
Recent LMA Submissions
LMA responds to the European Commission's Public Consultation Document - Review of the EU Benchmark Regulation
LMA responds to the EBA's Consultation Paper on 'Draft Guidelines on loan origination and monitoring'
LMA responds to the Treasury Committee inquiry on decarbonisation of the UK economy and green finance
LMA responds to the ISDA Consultation on Pre-Cessation Issues for LIBOR and Certain Other Interbank Offered Rates (IBORs)
