David Milligan (Hong Kong)

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ARRC formally recommends Term SOFR

On 29 July 2021, the ARRC has formally recommended the CME Group’s forward-looking Secured Overnight Financing Rate (SOFR) term rates (Term SOFR).  It follows the completion of interdealer trading conventions to SOFR earlier this week.  This means that parties which have contracts which include the ARRC hardwired fallbacks will fallback to Term SOFR given that … Continue Reading

An extended end-June 2023 cessation date for most USD LIBOR tenors? IBA announcement on consultation

Yesterday, the ICE Benchmark Administration (IBA) which compiles and oversees LIBOR, announced its impending consultation on what it is effectively a proposed extension of most (and the more widely used) US dollar (USD) LIBOR tenors until 30 June 2023. This is hugely significant for the markets in Asia where USD is by far the most … Continue Reading

APLMA issues SOFR-based Discussion Documents and Guidance Note

The Asia Pacific Loan Market Association (APLMA) has issued SOFR-based Discussion Documents and Guidance Note on 12 November 2020. This is a significant milestone in promoting discussions and accelerating the transition process in Asia. There is no settled market approach or convention as yet given the nascent stage of development of the RFR loan markets. … Continue Reading

Asia Pacific market participants respond to APLMA’s IBOR Transition survey

Last September, the LMA published Exposure Drafts of Compounded RFR Facilities Agreements by reference to SOFR and SONIA (being the chosen replacement near risk free rates for USD markets and LIBOR in the Sterling respectively), along with a commentary inviting market participants to consider various structuring issues (see earlier blog). The APLMA recently sought feedback from … Continue Reading