FFCB pilots US Libor note fix as legal remedy stalls

Exchange exercise offers partial relief, but could be repeated as US issuers seek to safeguard contracts

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A US issuer is taking the first steps towards future-proofing legacy Libor contracts amid growing scepticism that a legislative fix will emerge before the end of 2021, when the discredited rate will be left to die.

The Federal Farm Credit Banks Funding Corporation (FFCB) is asking bondholders to approve new fallback language for $1.9 billion of floating rate notes (FRNs), which would re-hitch coupons to the secured overnight financing rate, or SOFR, on Libor’s demise. The changes would allow

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