A fight between lenders and borrowers in the US leveraged loan market has slowed down the Libor transition there, even as the deadline to phase out the benchmark in existing corporate loans inches closer.
Roughly three-fourths of the $1.4 trillion US leveraged loan market still needs to flip to SOFR, or the Secured Overnight Financing Rate, to meet a deadline of the end of June to transition from the London interbank offered rate.
Lenders recently rejected a string of amendments that would have flipped the benchmark on some existing loans because they’re haggling over what’s called a “credit spread adjustment,” ...