Botched fallbacks leave CLOs facing early Libor switch

Robert Mackenzie Smith
22 Apr 2021

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Dozens of commercial real estate (CRE) securitisations will transition away from US dollar Libor in the coming weeks, more than two years ahead of schedule, after botched legal language was inserted into the deals. At current rates, the early changeover will hit equity investors, who take the first loss in securitised products.

The problem is thought to affect nearly two-thirds of CRE collateralised loan obligations (CLOs) issued since 2019. A total of 54 CRE CLOs worth a combined $37 billion

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]