Hedging RFRs: Documentation from ISDA, LSTA and LMA

In anticipation of LIBOR’s upcoming cessation and the transition to risk-free rates (RFRs), ISDA has updated its standard definitions to include various rate options for different forms of RFRs, as well as provisions for compounding and averaging RFRs. While derivatives that trade in the OIS market are expected to continue to use the so-called ‘self-compounding’ rate options, ISDA’s updates also allow for use of term RFRs and bespoke compounding to facilitate hedging of cash instruments that may use different forms of RFRs. In collaboration with the Loan Syndications & Trading Association (LSTA) and the Loan Market Association (LMA), ISDA has also recently published several forms of confirmation for use in hedging loans that reference RFRs with various conventions.

This webinar will cover the RFR-related provisions in ISDA’s documentation, as well as how counterparties can hedge RFR-linked loans.

Speakers include:
Ann Battle, Head of Benchmark Reform, ISDA
Namrata Praveen, Associate (Derivatives and Structured Products), Linklaters
Vinay Reddy, Capital Markets Consultant, Linklaters
Tess Virmani, Associate General Counsel & Executive Vice President, Public Policy, LSTA
Keith Taylor, Managing Director, LMA

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