https://wiki.treasurers.org/w/index.php?action=history&feed=atom&title=Rate_switch
Rate switch - Revision history
2026-08-10T04:11:24Z
Revision history for this page on the wiki
MediaWiki 1.40.0
https://wiki.treasurers.org/w/index.php?title=Rate_switch&diff=55164&oldid=prev
Doug: Update for LIBOR transition progress.
2024-03-11T19:16:39Z
<p>Update for LIBOR transition progress.</p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 19:16, 11 March 2024</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1">Line 1:</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>1. ''Interest rates - reference rates - transition from LIBOR to other RFRs - loan agreements''.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>1. ''Interest rates - reference rates - transition from LIBOR to other RFRs - loan agreements''.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>In <del style="font-weight: bold; text-decoration: none;">this </del>context, rate switching <del style="font-weight: bold; text-decoration: none;">means </del>switching a reference interest rate in a loan agreement from LIBOR to another appropriate risk-free rate, because of the discontinuation of LIBOR.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>In <ins style="font-weight: bold; text-decoration: none;">the </ins>context <ins style="font-weight: bold; text-decoration: none;">of LIBOR transition</ins>, rate switching <ins style="font-weight: bold; text-decoration: none;">meant </ins>switching a reference interest rate in a loan agreement from LIBOR to another appropriate risk-free rate, because of the discontinuation of LIBOR.</div></td></tr>
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Doug
https://wiki.treasurers.org/w/index.php?title=Rate_switch&diff=39988&oldid=prev
imported>Doug Williamson: Create page. Sources: Linked pages.
2021-07-17T19:39:33Z
<p>Create page. Sources: Linked pages.</p>
<p><b>New page</b></p><div>1. ''Interest rates - reference rates - transition from LIBOR to other RFRs - loan agreements''.<br />
<br />
In this context, rate switching means switching a reference interest rate in a loan agreement from LIBOR to another appropriate risk-free rate, because of the discontinuation of LIBOR.<br />
<br />
<br />
:<span style="color:#4B0082">'''''Hardwired rate switch wording accommodated in RCF'''''</span><br />
<br />
:"Alongside its ESG core, the RCF was one of the first products of its kind to include hardwired switch wording to anticipate the discontinuation of LIBOR. <br />
<br />
:In a market dominated by efforts to build contingencies against COVID-19, Ahold Delhaize faced challenges with encouraging its lenders to focus and align on that aspect of the deal.<br />
<br />
<br />
:However, in light of the firm’s track record as a credible borrower with a clear IBOR reform plan, constructive legal counsels and a facility agent were able to accommodate the feature operationally. <br />
<br />
:Rewarding discussions, concluded in a tight time frame, produced wording that satisfied all parties and set an example for other deals to follow."<br />
<br />
:''ACT Deals of the Year Awards 2020 - Ahold Delhaize''<br />
<br />
<br />
2. ''Market rates''.<br />
<br />
Any other change of an applicable rate.<br />
<br />
<br />
== See also ==<br />
* [[Alternate Base Rate]]<br />
* [[Alternative Reference Rates Committee]]<br />
* [[Amendment approach]]<br />
* [[Benchmark]]<br />
* [[Counsel]]<br />
* [[Facility agent]]<br />
* [[Fallback]]<br />
* [[Hardwired]]<br />
* [[IBOR]]<br />
* [[Legacy]]<br />
* [[LIBOR]]<br />
* [[Market rate]]<br />
* [[Provision]]<br />
* [[Reference rate]]<br />
* [[Revolving credit facility]] (RCF)<br />
* [[Risk-free rates]] (RFRs)<br />
* [[Transition]]<br />
* [[Transition risk]]<br />
<br />
[[Category:Accounting,_tax_and_regulation]]<br />
[[Category:The_business_context]]<br />
[[Category:Corporate_finance]]<br />
[[Category:Investment]]<br />
[[Category:Long_term_funding]]<br />
[[Category:Identify_and_assess_risks]]<br />
[[Category:Manage_risks]]<br />
[[Category:Risk_frameworks]]<br />
[[Category:Risk_reporting]]<br />
[[Category:Financial_products_and_markets]]</div>
imported>Doug Williamson