Duane Morris LIBOR Transition Team leader Roger Chari recently published an article with Thompson Reuters Practical Law. He addressed several crucial questions that borrowers might have and gave some insight on navigating the options that are available as the end of LIBOR looms.
So far, much of the focus has been on getting lenders to stop originating LIBOR loans in favor of loans based on alternative, risk-free rates. As we get closer to that becoming a reality on a broad scale, it’s worth taking a look at the issue from a borrower’s perspective. Borrowers have no say in the phaseout of LIBOR, but to varying degrees they will have a say in which alternative rates will become prevalent in the market.
To learn about what a borrower should do in light of the availability of alternative reference rates in the very near future, check out our Alert here.