Major new developments related to the future cessation and loss of representativeness of LIBOR

In important developments in the transition from LIBOR to alternative reference rates, LIBOR’s regulator and its administrator, as well as trade groups, have made recent announcements related to the future of LIBOR that are both consistent with the phased transition plan and prior announcements, but nonetheless represent crucial operational progress.  Importantly, these announcements fixed the fallback spread adjustment for certain derivatives and cash products as of March 5, 2021.  Consistent with market expectations based on prior announcements, the actual dates on which all LIBOR settings will either cease to be provided or no longer be representative, at the end of 2021 or in mid-2023 (depending on the setting), have been confirmed.