• Blue Rose Marketing

Basis Points - LIBOR Phase-out Update

By: Sam Gruer, Managing Director


A few weeks ago, Blue Rose and its sister company, HedgeStar, hosted a webinar relating to the phase-out of the LIBOR Index and what it means for participants in the municipal market. The webinar was well attended by approximately 200 registered participants and concluded with many well-thought questions by those attendees. For those of you who did not attend, we encourage you to listen to our recording of the event (link to webinar).

During the webinar, we discussed several legislative initiatives intended to cover legacy financial instruments that do not include fallback language and are not subject to the ISDA 2020 IBOR Fallbacks Protocols. In particular, these legislative initiatives are designed to create a safe harbor for amending the LIBOR Indices on these types of transactions. Last week, one such piece of legislation in New York was passed by both the State Senate and the State Assembly and is currently awaiting signature from Governor Andrew Cuomo. Because New York law governs most ISDA agreements and many other financial contracts, we encourage you to discuss with your legal counsel what this might mean for you. To discuss or evaluate the potential financial impact, if any, of this legislation, please reach out to your Blue Rose representative.


About the Author:


Sam Gruer, Managing Director

Sam Gruer, a 30-year municipal market veteran, joined Blue Rose in 2017 as a Managing Director and leader of the firm’s reinvestment business unit. Mr. Gruer guides his clients through the debt/swap/reinvestment transaction process by making strategic recommendations based on sound, thoughtful, and sophisticated analysis. He also offers expert advice on determining the optimal structure for reinvestment of bond proceeds by evaluating risk tolerance, identifying legal restrictions and estimating cash flow needs for his clients. He serves clients from our Roseland, New Jersey office. Mr. Gruer can be reached at: sgruer@blueroseadvisors.com


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