Libor Clock Ticking for Billions of Dollars of Leveraged Loans
- Half of market still must switch ahead of June 30 phase out
- About 8% of remaining Libor loans have no fall-back language
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Billions of dollars of leveraged loans are running short on time to transition away from the scandal-plagued London interbank offered rate before the benchmark is phased out at the end of June.
A little over half of the underlying loans in CLOs still need to make the switch, according to Barclays Plc research as of May 30. CLOs own about two-thirds of the institutional leveraged loan market, and are a proxy for understanding what’s happening in the $1.4 trillion asset class.