Latest Financial News ~ June 4, 2023

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If you are not familiar with this, or put it off,  please consider reading this. YOU are going be  at a severe disadvantage in financial decisions. READ THE LINKS! Not all bad news! 

The World of Finance is going to change wherever you live.  Anytime you see the word “FINAL” something like this will effect generations coming.  

The latest The United Kingdom’s Financial Conduct Authority issued a final message before the important end-June 2023 deadline.It is now 1 month until the US dollar LIBOR panel ends on 30 June 2023. This is the last remaining LIBOR panel and its end marks another critical milestone in the transition away from LIBOR.[FCA] The Alternative Reference Rates Committee (ARRC) released a Statement on the Last 30 Days before U.S. Dollar LIBOR Panels End With only 30 days remaining, the ARRC urges market participants with LIBOR exposures to complete their transition efforts now [ARRC] The latest The United Kingdom’s Financial Conduct Authority issued a final message before the important end-June 2023 deadline.It is now 1 month until the US dollar LIBOR panel ends on 30 June 2023. This is the last remaining LIBOR panel and its end marks another critical milestone in the transition away from LIBOR.[FCA] The Alternative Reference Rates Committee (ARRC) released a Statement on the Last 30 Days before U.S. Dollar LIBOR Panels End With only 30 days remaining, the ARRC urges market participants with LIBOR exposures to complete their transition efforts now [ARRC] Financial institution announcements Wells Fargo (link) Truist Financial Corporation (link) BNY Mellon (link) Morgan Stanley (link) In the News Loan market braced for rush to Libor finish line. At least $700bn of junk loans are still priced using lending benchmark, just 30 days before the rate is set to expire.[Financial Times] Libor’s Last Users Face Challenges as the Deadline for Its Demise Nears. Thirty days before the borrowing benchmark ceases in its current form, some U.S. companies are still contemplating transition work and options for extending its use [WSJ] Analysis: As sun sets on LIBOR, its successor rate may heighten bank risks. The effective demise of the tainted London Interbank Offered Rate (LIBOR) next month and the switch to the risk-free rate has renewed concerns about the potential negative impact of the new measure on bank balance sheets in times of financial stress. [Reuters] Quote of the day “We were pleased with the performance of AXI and FXI during March where underlying transaction volumes rose significantly in the long term component of AXI. The rates have now come back down below the ARRC / ISDA  spreads.” – Marcus Burnett, SOFR Academy CEO