3 2
Sample of Existing Fallbacks
for Various Asset Classes
Fallback mechanisms vary by product. Loans, securitization and
derivative products, and floating rate notes that reference LIBOR
(or another IBOR) have particularized nuances in fallback language
that should be appreciated. Inconsistency in the market may arise
even within the same product type, leading to uncertainty and, in all
cases, necessitating detailed contract-level review and analysis.
APPENDIX
A
Table Source: "Preparing for Transition: Update on Libor and a Possible Shift to Alternative Reference
Rates," RBC Capital Markets (March 2018); ARRC Roundtable Meeting Materials (Nov. 2, 2017).
