Libor is going away in 2021 and treasury and finance executives are slowly making preparations. One item on their to-do list is fallback language. That’s the wording to indicate the rate that corporates would… fall back on in the event a Libor-related loan is still around after Libor sunsets at the end of 2021.
Fortunately for finance executives, the Alternative Reference Rates Committee, which is overseeing the transition from Libor in the U.S., recently released its recommended Libor fallback language. Even so, implementing fallback language – and preparing for a world without Libor – is no slam dunk.
On this episode of AFP Conversations, Meredith Coffey provides insights on what financial professionals need to do to prepare. Coffey is Executive Vice President of the Loan Syndications and Trading Association where she runs the research department and co-heads the LSTA’s regulatory efforts to help facilitate continued availability of credit and efficiency in the loan market.
She is also a member of the Alternative Reference Rates Committee, or ARRC, she co-chairs the ARRC’s Business Loans Working Group, and she has testified several times before Congress about loan markets.
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