LIBOR Archives - CFO

LIBOR No More: Transition Creates Challenges

Risk & Compliance

LIBOR No More: Transition Creates Challenges

In a perfect world, the respective parties to loan documents could simply agree that an alternate rate is needed. But the world is not perfect.

By James T. Shearin, Brion J. Kirsch, and Amanda G. Gurren | October 22, 2020

Banks Prepare for ‘Big Bang’ Switch From LIBOR

Credit & Capital

Banks Prepare for ‘Big Bang’ Switch From LIBOR

The SOFR referencing rate is estimated to cover interest rate swaps on more than $80 trillion worth of notional debt.

By Lauren Muskett | October 16, 2020

Tuesday Regulatory Update: The Winds of Fraud

Risk & Compliance

Tuesday Regulatory Update: The Winds of Fraud

Swap fraud; wind turbine con; holding firm on LIBOR switch; and more.

By Vincent Ryan | July 14, 2020

The LIBOR Floor Is Rising

Investment Banking

The LIBOR Floor Is Rising

For many investment-grade borrowers, a LIBOR floor could double the funding spread on a loan.

By Vincent Ryan | May 21, 2020

Avoiding the Floor on Negative Rates

Avoiding the Floor on Negative Rates

The impact of the inability of a borrower to take advantage of negative base rates is significant.

By Vincent Ryan | March 25, 2020

Plan Now for an Orderly Transition from Libor

Corporate Finance

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.

By David McCann | March 10, 2020

NY Regulator Seeks Banks’ Libor Transition Plans

Risk & Compliance

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."

By Matthew Heller | January 6, 2020

Navigating Reference Rate Reform

Credit & Capital

Navigating Reference Rate Reform

With Libor’s days numbered, companies should start transitioning immediately to lessen the impact of adopting new reference rates.

By Lauren Muskett | September 12, 2019

Libor’s Phase-Out: 3 Ways to Prepare

Credit & Capital

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.

By Vincent Ryan | August 12, 2019

Manipulate Cash Flow to Boost Credit Ratings?

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.

By David McCann | November 29, 2018

New York Fed Launches Alternative to Libor

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.

By Matthew Heller | April 3, 2018

Libor Rise Tightens Conditions for Borrowers

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"?

By Matthew Heller | March 28, 2018

How to Boost the Value of Deferred-Comp Plans

Risk Management

How to Boost the Value of Deferred-Comp Plans

A "total return swap" isn't a common way to hedge the volatility of non-qualified deferred compensation (NQDC) plans, but it's the most effective method.

By Benjamin Eisler | August 22, 2017

The End of the Dollar’s Super-Cycle

The End of the Dollar’s Super-Cycle

We live in an age of asset bubbles, but they don't continue indefinitely, as will prove true for the strong U.S. dollar.

By Christopher Whalen | May 4, 2017

Key Libor Rate Tops 1% for First Time in 7 Years

Key Libor Rate Tops 1% for First Time in 7 Years

The benchmark rate for $350 trillion worth of financial products worldwide has risen nearly 0.40 percentage point over the past year.

By Matthew Heller | January 4, 2017