Careening Away from LIBOR: Why, When, and How LIBOR will be Replaced

Originally held on Tuesday, March 19, 2019 | 9:00 a.m. – 12:00 p.m.

 

Program Chair:
Gary E. Kalbaugh
Deputy General Counsel and Director
ING Financial Holdings Corp.

  • LIBOR has been referred to as the world’s most important number.  Short for London Inter-bank Offered Rate, LIBOR is a benchmark rate that is calculated from reported interest rates that select banks pay to borrow from each other on an unsecured basis.  LIBOR is embedded as a reference rate in over $260 trillion of loans and derivatives, including student loans, variable-rate mortgages, corporate loans, futures contracts and interest-rate swaps.

    After a LIBOR manipulation scandal riled regulators, LIBOR lost its global prominence and is being phased out. The transition away from LIBOR as a new, alternative benchmark rate is underway.  This program will provide a basic overview of LIBOR and an update on important developments as to why, how and when LIBOR will be replaced.

    OnDemand: $179 for Members | $279 for Nonmembers

    Members who are Recent Law Graduates (not yet admitted), Newly Admitted Lawyers, In-House/Corporate Counsel, Judges (and their staff), or attorneys that practice within the Government, Academic or Not-for-Profit sectors attend this program for free.

  • Moderator:
    Christian A. Johnson
    Dean and Professor of Law
    Widener University Commonwealth Law School
    Panel:
    Chris Killian
    Managing Director
    Securitization and Credit Markets
    SIFMA
    Robert McLaughlin
    Fried, Frank, Harris, Shriver & Jacobson LLP
    Alexis A. Pederson
    Senior Company Counsel
    Wells Fargo Legal Department

    Moderator:
    Lauren Pederson
    Managing Attorney
    Wagner Pederson LLC
    Panel:
    Thomas V. D’Ambrosio
    Morgan, Lewis & Bockius LLP
    Ryne V. Miller
    Sullivan & Cromwell LLP
    Subadra Rajappa
    Head of U.S. Rates Strategy
    Société Générale
    Ian Walker
    Analyst
    Covenant Review

    Moderator:
    Vanessa Conway
    Director, Legal Counsel
    Mizuho Securities Americas LLC
    Panel:
    Ann Battle
    Assistant General Counsel
    International Swaps and Derivatives Association
    Ilene K. Froom
    Reed Smith LLP
    Tess C. Virmani
    SVP and General Counsel
    Loan Syndication & Trading Association

  • 9:00 a.m. – 9:05 a.m. Introduction

    Gary E. Kalbaugh

    9:05 a.m. – 10:00 a.m. The Transition to Alternative Rates and How We Got Here

    Moderator – Christian A. Johnson

    Panel – Chris Killian, Robert McLaughlin, Alexis Pederson

    • Why is LIBOR being phased out?
    • Where is LIBOR used now?
    • The Roles and Responsibilities of ARRC.
    • How SOFR (Secured Overnight Financing Rate) is calculated
    • Other global initiatives to develop alternative rates advised and/or admonished against
    10:00 a.m. – 10:10 a.m. Break
    10:10 a.m. – 11:00 a.m. Market Readiness for the Transition and Expected Timelines for Implementing Alternative Rates

    Moderator – Lauren Pederson

    Panel – Thomas V. D’Ambrosio, Ryne V. Miller, Subadra Rajappa, Ian Walker

    • Transition Timing – the ARRC’s transition timeline
    • Legal repercussion of not having a fallback to a discontinued reference rate
    • Transition concerns and readiness for banks
    • Transition concerns and readiness for buyside
    11:00 a.m. – 11:05 a.m. Break
    11:05 a.m. – 12:00 p.m. Preparing For the Transition to Alternative Rates in OTC Derivatives and Loan Documentation

    Moderator – Vanessa Conway

    Panel – Ann Battle, Ilene K. Froom, Tess C. Virmani

    • Types of OTC Derivatives Contracts that Reference LIBOR.
    • Common Contractual Adjustments to OTC Derivatives Contracts that Reference LIBOR
    • How is derivatives documentation changing to address the expected transition?
    • Spread Adjustments
      • Key Trigger Events and Adjustments
      • Potential loan amendments
      • The ARRC Consultation for Syndicated Business Loans

  • CLE Credit
    New York:
    3.0 Professional Practice
    New Jersey:
     3.2 General
    California:
    2.5 General
    Pennsylvania:
     2.5 General

  • Sponsoring Association Committees:
    Futures & Derivatives Regulation | Gary E. Kalbaugh, Chair

    Sponsorship Opportunities are Available! Please Contact:
    Angie Avila, Manager, Membership Outreach and Sponsorships | (212) 382-6608 | aavila@nycbar.org

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