Equipment Finance News
  • News
  • Event
  • Data
  • Features
Log In
No Result
View All Result
  • Agriculture
  • Construction
  • Material Handling
  • Transportation
  • Vendor Operations
  • Lender Operations
Equipment Finance News
  • News
  • Event
  • Data
  • Features
No Result
View All Result
Equipment Finance News
No Result
View All Result

New federal statute eases burden on LIBOR transition

IMN – ELFA Investor’s Conference on Equipment Finance 2022

Joey PizzolatobyJoey Pizzolato
May 9, 2023
in Lender Operations
Reading Time: 2 mins read
0
Share on FacebookShare on LinkedIn

NEW YORK — A new federal statute tied to the Consolidated Appropriations Act should ease the burden on bank-regulated lenders as the industry prepares for the forthcoming transition away from the London Interbank Offered Rate (LIBOR).

The Adjustable Interest Rate LIBOR Act, which was signed into law March 15 as part of the larger $1.5 trillion Consolidated Appropriations Act, protects deals using LIBOR that don’t have fallback language by automatically transitioning to the Federal Reserve’s term secured overnight funds rate (SOFR), Barbara Goldstein, partner at Mayer Brown, said Wednesday during the IMN – ELFA Investor’s Conference on Equipment Finance in New York City.

Bank-regulated lenders have been under “extreme pressure” to avoid using LIBOR on new transactions starting January 1, Goldstein said, and have until June 30, 2023, to transition from LIBOR on existing transactions.

Under the statute, transactions without fallback language will be transitioned automatically to Term SOFR, she said. “If a person is charged with selecting a new benchmark [and] they choose SOFR or another federally authorized benchmark, they’re not going to have liability and will be protected against claims.”

Already, much of the market has settled on forward-looking Term SOFR, Goldstein said, with about 89% of transactions since Jan. 1, 2022, using the Fed’s benchmark.

Some automakers and captives have already started using Term SOFR. Hyundai Capital America, for one, was the first S&P Global-rated public auto loan asset-backed securitization to include a floating rate indexed to SOFR in November 2021. Ford Motor, too, utilized SOFR when it refinanced three revolving credit facilities in September 2021.

The transition away from LIBOR was first set for 2021, but was halted in 2020 due to the effects of the COVID-19 pandemic. In April 2021, the Federal Reserve laid out its path for securitized issuers to transition.

This story first appeared on Auto Finance News, a publication of Royal Media.

Tags: equipment ABSequipment financeFederal ReserveLIBORrisk managementSOFR
Previous Post

Financiers should watch for ‘stagflation,’ economist says

Next Post

Royal Media, Trnsact launch equipment finance ‘matchmaking’ event

Related Posts

Although, future environmental conservation and sustainable esg modernization development by using technology of renewable resources to reduce pollution and carbon emission
Lender Operations

Equipment companies target 50% emissions reduction by 2030

September 22, 2023
Lender Operations

Societe Generale vague on equipment finance future

September 19, 2023
Business, future technology and artificial intelligence concept - robot and human hand connected by lightning over black background
Lender Operations

Tamarack Technology, Rinaldi Advisory Services merge AI, intelligence

September 12, 2023
Next Post
Truck

Royal Media, Trnsact launch equipment finance ‘matchmaking’ event

Proud Member Of

Check Out Our Equipment Finance Event

Stay Informed with Our News

Vendor Operations

Vinyl records being pressed and packed at United Record Pressing. Nashville, TN. Photo: Eilon Paz

US business equipment orders rebound after downward revision

September 27, 2023
Work Truck Solutions, Maritz offer commercial sales education

Work Truck Solutions, Maritz offer commercial sales education

September 14, 2023
ai training concept

Equipment vendors leverage AI amid labor shortage

September 7, 2023
  • About Us
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Connect with us

© 2023 Royal MediaRoyal Media

No Result
View All Result
  • News
    • All News
    • Agriculture
    • Construction
    • Vendor Operations
    • Lender Operations
    • Material Handling
    • Transportation
  • Event

© 2023 Royal MediaRoyal Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept