CREFC Industry Initiatives: LIBOR Legacy Playbook
March 13, 2023
In February, CREFC announced the release of the CREFC LIBOR Legacy Playbook (“Playbook”).
Why it matters: US Dollar LIBOR is scheduled to cease being published on a representative basis beyond June 30, 2023. With that impending deadline in mind, CREFC and its members have developed the CREFC LIBOR Legacy Playbook (“Playbook”) to address the implications and operational issues related to transitioning LIBOR-based loans to the recommended SOFR index plus the recommended spread adjustment (or another contractually agreed-upon benchmark).
The transition from LIBOR to an alternate benchmark will impact numerous floating-rate market participants, including borrowers, master, primary, and special servicers, trustees, certificate administrators, operating advisors, rating agencies, traders, and investors. The Playbook should prove useful to all. CREFC’s intent is to update the Playbook as needed as the transition progresses.
CREFC invites investors and other market participants to review the Playbook for insight into the transition process and to submit any questions to Raj Aidasani or Kathleen Olin.