Tuesday Regulatory Update: The Winds of Fraud
Swap fraud; wind turbine con; holding firm on LIBOR switch; and more.
The LIBOR Floor Is Rising
For many investment-grade borrowers, a LIBOR floor could double the funding spread on a loan.
Avoiding the Floor on Negative Rates
The impact of the inability of a borrower to take advantage of negative base rates is significant.
Plan Now for an Orderly Transition from Libor
Complying with the switch to alternative risk-free rates will be a massive undertaking for financial institutions and other companies.
NY Regulator Seeks Banks’ Libor Transition Plans
Inadequate preparation for the transition "could have an adverse impact on the safety and soundness of regulated institutions."
Navigating Reference Rate Reform
With Libor’s days numbered, companies should start transitioning immediately to lessen the impact of adopting new reference rates.
Libor’s Phase-Out: 3 Ways to Prepare
Derivatives and hedge accounting, intercompany loans, valuation models — all will be affected by the shift away from Libor.
Manipulate Cash Flow to Boost Credit Ratings?
The role of credit-rating agencies in determining interest costs on bank loans leaves much to be desired, a study finds.
Risks Mount for Banks and Non-Banks Alike
Tight spreads and growing liquidity risks promise to present financial firms with steep challenges in the coming months.
New York Fed Launches Alternative to Libor
The new SOFR interbank lending rate is "going to be based on a very, very robust set of transactions" and could eventually replace Labor.
Libor Rise Tightens Conditions for Borrowers
Is the rise in the benchmark “technical in nature, in which case short-term rates will eventually normalize, or a harbinger of another banking catastrophe"?