The Effect of LIBOR Cessation on Bonds – What’s a Trustee to do?
By EsqSocial Corporation 13/05/21
The transition from LIBOR represents a potential change in the interest rate on a bond. Background On April 6, 2021, New York Governor Cuomo signed into law legislation aimed to provide legal certainty and curb litigation as LIBOR is discontinued in favor of another fallback benchmark rate. While the most popular tenors of LIBOR (forward-looking 1-month and 3-month rates) may continue to be published up until June 2023, it is estimated that of the $864 billion of bonds referencing LIBOR that...
By: Arent Fox