Home Commodities IBOR Transition Digest – June 27, 2022 – Commodities/Derivatives/Stock Exchanges

IBOR Transition Digest – June 27, 2022 – Commodities/Derivatives/Stock Exchanges


To print this article, all you need is to be registered or login on Mondaq.com.

The IBOR Transition Digest is a periodic compendium of global
regulatory and market developments and insights on the complex
issues confronting financial market participants as they continue
to transition from LIBOR and its variants to replacement benchmark
interest rates. As the market moves to the next phase of IBOR
transition, it is critical to have access to comprehensive and
timely resources about the market.

For additional resources and an introduction to our global
cross-practice IBOR Transition Task Force, please visit Mayer
Brown’s IBOR Transition portal.

Thought Leadership
News and Developments


LIBOR Phase Out – Tax Implications
in the Context of Related-Party Loans

Eye on IBOR blog, 8 June 2022

As market participants evaluate their loan portfolios and implement
strategies to transition away from the London Interbank Offered
Rate (“LIBOR”), they must address not only third-party
loans, but related-party loans as well, in part because Treasury
regulations under Internal Revenue Code Section 482 require such
loan agreements to reflect an arm’s length rate of

IBOR Legislation and the Final

TaxQuarterly, 23 May 2022

Under the final Treasury regulations under Treas. Reg. section
1.1001-6, which generally provide broad relief from the potential
U.S. federal income tax consequences of IBOR replacement for most
contracts, assuming an IBOR being replaced is a rate that is a
“discontinued IBOR” on the date of replacement (within
the meaning of the regulations), as long as there are no payments
made between the parties to a contract unrelated to IBOR
replacement, a LIBOR replacement amendment is not generally
considered to result in a deemed exchange for federal income tax
purposes. The exceptions to the blessing of the final regulations
are all focused on the parties intending to transfer value in
connection with an IBOR replacement.


United States – Syndicated and Bilateral Loans

LIBOR Transition: Lessons from Across the

Loan Syndications & Trading Association, 12 May

Discussing the US term RFR approach compared to the UK compounded
in arrears approach, the treatment of legacy loans (the UK has
completed the transition), and the ways in which the US can
complete its transition of legacy loans.

To view the full article click here

Visit us at

Mayer Brown is a global legal services provider
comprising legal practices that are separate entities (the
“Mayer Brown Practices”). The Mayer Brown Practices are:
Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited
liability partnerships established in Illinois USA; Mayer Brown
International LLP, a limited liability partnership incorporated in
England and Wales (authorized and regulated by the Solicitors
Regulation Authority and registered in England and Wales number OC
303359); Mayer Brown, a SELAS established in France; Mayer Brown
JSM, a Hong Kong partnership and its associated entities in Asia;
and Tauil & Chequer Advogados, a Brazilian law partnership with
which Mayer Brown is associated. “Mayer Brown” and the
Mayer Brown logo are the trademarks of the Mayer Brown Practices in
their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights

Mayer Brown
article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein.

POPULAR ARTICLES ON: Finance and Banking from United States

Source link

Previous articleICG Enterprise Trust Plc: Portfolio Update
Next articleAdvisorNet Financial Inc Buys 6,087 Shares of Blackrock Resources & Commodities Strategy Trust (NYSE:BCX)


Please enter your comment!
Please enter your name here