Fitch warns on challenge of investor consent in Libor transition

Libor
By Max Adams
21 Aug 2019

As Libor’s end date approaches, Fitch Ratings warns this week that investor consent for the switch to a replacement rate represents a significant challenge for legacy RMBS deals.

Citing a roundtable of trustees gathered by the rating agency earlier this month, Fitch said that bondholder communication would be a key challenge as Libor’s 2021 phase out nears. Approximately $1.2tr of adjustable rate mortgages float over Libor, with around $178bn of that backing US RMBS deals.

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