What the Fed Means by ‘New’ When It Says No New Libor Contracts

U.S. financial regulators have provided extra detail about just what should be defined as new Libor-related contracts, which they are pushing to bring to an end this year.

The Federal Reserve, along with four other federal bodies and various state overseers, released guidance on Wednesday that defines as new an agreement that creates additional London interbank offered rate exposure for an institution or extends the term of an existing contract. The definition does not, however, include the drawdown of legally enforceable committed facilities that have not been fully tapped, leaving open the possibility of using existing revolvers.

And with just ...