The ARRC Consultation on Spread Adjustment Methodologies for Fallbacks in Cash Products Referencing USD LIBOR is finally here. How the spread adjustment from LIBOR to a SOFR index will be calculated is one of the more consequential open items on the ARRC’s to-do list.
Continue Reading Quick Note: The ARRC Spread Adjustment Consultation
January 2020
It’s Time to Originate a SOFR Loan! Really!
It is time to start originating Single Asset Single Borrower (SASB) large loans priced on SOFR. There, I said it. Not just LIBOR indexed loans containing a SOFR fall back when LIBOR inevitably goes away, but new loans indexed to Compounded SOFR, implementing all the necessary tweaks to documents, systems and processes to make that work now!
Continue Reading It’s Time to Originate a SOFR Loan! Really!
2020: An Outlook
One of the good things about the 24/7 news cycle, perhaps one of its few positive externalities, is that it’s a boon for the pontification business. It enables all sorts of otherwise serious people to make fools of themselves day in and day out predicting generally gloomy stuff, as sunshine doesn’t sell. As a card-carrying member of the chattering class, this empowers me to publish periodic outlooks about the future with little risk of any fundamental embarrassment. It’s sort of a no risk undertaking, isn’t it? If you happen to get something right (think blind cat finding dead mouse), you can claim to be a star. If you get it wrong, well, everyone else got it wrong, too – and often on national television.
The other thing we’ve got going for us in the bloviating business is that we remain in fraught and friable times. We are running short of good synonyms for shock and outrage and struggling to describe what might actually be viewed as extraordinary. What really does extraordinary mean these days? These make good times for the prediction biz. It’s not much fun making predictions when not much changes. Imagine that poor sod, talking to the Pharaoh during the Old Kingdom after reading many entrails, I foresee…nothing really changing for 2000 years; more news at 11.
Unburdened by much of the way in data and little in the way of anxiety about getting it wrong, I’m ready to tell you all about 2020:Continue Reading 2020: An Outlook