Banking & Finance Update – Q2 2020

Banking & Finance Update – Q2 2020

 

As part of our sector-focused series, we have curated the key resources and points you need to know from this quarter’s legal updates. Understand the key news stories, practice notes, timelines and upcoming webinars specific to the Banking & Finance sector.

 

LMA briefing Q2 2020: Pathway Finance and Re A company

In this briefing, the LexisPSL Banking & Finance team looks at two cases which have particular resonance for the new world we find ourselves in. Read more…

 

LMA publishes list of loan referencing risk-free rates

Banking & Finance analysis: In this analysis, Tim Rennie, partner at Ashurst LLP, with supporting contributions from Nick Moore, Darren Phelan and Briony Holcombe of Ashurst LLP, consider the impact of the Loan Market Association (LMA) list of loans referencing risk-free rates.  Read more…

 

COVID-19 and the impact on financial covenants

JIBFL: Donald Lowe, partner, and James Bell, Knowledge Counsel in the Finance department at Travers Smith LLLP, examine in this article, the impact of COVID-19 on financial covenants. Read more….

 

What are the economic and practical effects of COVID-19 on the European CLO market?

Banking & Finance analysis: Collateralised loan obligation (CLO) transactions have long been a prolific investor in sub-investment grade corporate debt both in Europe and the US. The combination of the outbreak of SARS-CoV-2 and the related respiratory disease (coronavirus (COVID-19), the impact of coronavirus on such corporate debt and the CLO market’s reliance on such corporate debt has, very quickly, created a perfect storm affecting various aspects of the European CLO market. Claire Puddicombe, David Quirolo, and Daniel Tobias, all partners at Cadwalader Wickersham & Taft LLP discuss the impact of COVID-19 on the European CLO market. Read more…

 

The impact of coronavirus on OTC derivatives

Guy Dempsey, Of Counsel at Katten Muchin Rosenman LLP, and Carolyn Jackson, partner at Katten Muchin Rosenman UK LLP, and both P.R.I.M.E. Finance experts, discuss the impact of the coronavirus (COVID-19) on OTC derivatives, including which OTC derivatives are most affected by the pandemic, whether market disruption or other circumstances could become Force Majeure events, defensive measures market participants should be taking and how derivatives regulators are responding.  Read more…

 

What do I need to know about LIBOR?

Are you confused about LIBOR? In this 25-min explainer, Emma Millington and Miranda Campbell, of LexisPSL, speak to Mark Dodd at Lawyers on Demand and discuss what it is.  Read more…

 

Covid-19 toolkit & blog

Organisations, irrespective of their business type, sector or size, have found themselves in uncharted water with the onset of coronavirus (COVID-19).

There are many common areas of concern for organisations at this challenging time. This Covid-19 toolkit has been created to provide in-house lawyers or legal advisers with easy access to news, practical guidance and Q&As from across a number of Lexis®PSL Practice Areas (subject to subscription) that relate to these key areas of concern.

In addition to coronavirus-specific content, this toolkit also highlights additional guidance and support materials of general relevance to each of these areas.

In-house lawyers at financial institutions may find the following resources particularly helpful:

Not a subscriber to Lexis®PSL? See the free resources and information on our Covid-19 blog. For a free trial of our Lexis®PSL product, click here.

 

LIBOR focus – commercial and practical help

LIBOR remains a key focus for many in-house lawyers. Our Practice Note and tracker will help you to keep up to date with the development of alternative RFRs and plan for a smooth transition away from LIBOR.

LIBOR transition

LIBOR developments tracker

 

Brexit focus - commercial and practical help

To help you cut through the noise, here are a few resources giving you the need-to-know information:

1. Brexit toolkit

Our Brexit toolkit draws together Brexit content for the practice areas that are relevant for you.

Brexit toolkit 

Not a subscriber? Click here for a free trial.

2. Brexit - Statutory Instruments (SI) tracker

This tracker lists all Brexit-related financial services statutory instruments (SIs), together with explanatory memoranda and other information for each SI, as well as links to primary sources.

Brexit—Financial Services—Statutory Instruments (SI) tracker.

3. Brexit – impact on finance transactions

This Practice Note provides information relating to the impact of Brexit on finance transactions. It summarises the approach being taken in relation to financial services generally in the event of a deal and in the event of no deal, before explaining general Brexit related issues for finance transactions. It then sets out key issues for various specific types of financing, including project finance, real estate, aviation, debt capital markets and derivatives.

Brexit—impact on finance transactions

Click here for a free trial of our Brexit Toolkit.

 

Keeping up to date

Key dates you need to know, publications and announcements relating to legal issues in Banking & Finance.

Click to view trackers and practice notes in the following topic areas:

Brexit timeline

Brexit legislation tracker

Banking & Finance case tracker

LIBOR developments tracker

Sustainable finance – recent news

Banking & Finance – key dates and future developments tracker: 2020 and beyond

Weekly highlights

Not a subscriber to Lexis®PSL?  For a free trial click here.

 

Useful resources

Banking & Finance – new starter guide

New Banking & Finance content

Banking & Finance Q&As – overview

Banking & Finance forms and precedents

Banking & Finance cross border resources (Europe, Americas, Asia-Pacific and Africa)

Banking & Finance resources in Lexis®Library

Lexis®PSL Banking & Finance blog

Banking & Finance—Meet the Experts

 

Industry body trackers

LMA – latest news on documentation

ISDA – latest news on documentation

ICMA – latest news on documentation

 

Content specific to in-house lawyers

In Banking & Finance, we have a dedicated topic for in-house banking & finance lawyers, helping you to navigate the intricacies of working in-house.  Useful resources include:

 

Checklists

Busy in-house lawyers often want to use checklists to ensure that they have ticked off what they need to do on their legal matters.  In Banking & Finance, we recognise that in-house lawyers juggling multiple matters often benefit from checklists to ensure that the important points have been covered off.  To that end, in LexisPSL we have checklists covering an array of issues, including, for example:

Amending a facility agreement – checklist

Drafting a confidentiality agreement (disclosing party) – checklist

Reviewing a confidentiality agreement (reviewing party) – checklist

Brexit checklist –finance documents

Checklist for reviewing a foreign law opinion

Intercreditor checklist – senior lenders

Intercreditor checklist – junior lenders

Prospectus Regulation – debt capital markets checklist

Agreeing engagement terms with external law firms – a checklist for in-house banking & finance lawyers

 

P.R.I.M.E. Finance collaboration

We are proud in LexisPSL to support and work with P.R.I.M.E. Finance, whose mission is to ensure that the best expertise is available for the settlement of complex market disputes.  The COVID-19 pandemic  is becoming a financial crisis, and one which is likely to have enormous reperucssions.  We are supporting P.R.I.M.E. Finance with its virtual conference programme, PRIMEtime Virtual Events with its first webinar, Dispute Resolution in a pandemic, taking place on 24 June, followed by ‘Market: COVID-19 and the credit, structured finance and derivatives market’ and ‘Law and Regulation: COVID-19 – what’s regulation got to do with it?’ with dates to be confirmed.

Please sign up for these free events here.

 

Webinars

Sign-up to upcoming and view on demand:

Banking and Financial Services

The rest of the year continues to set out great developments and challenges in banking and financial services practice and our diverse 2020 programme has been designed with this in mind to give practitioners all the knowledge and tools they will need to succeed.

The next webinar is a green finance update, in which insight is given into how financing investments can provide environmental benefits.  Other topics of note include digital enhancement principles in which experts delve into how as banks and law firms forced to embrace technological challenges are having to learn about the new types of digital finance available. Also, our banking & finance experts examine the impact that Brexit will have on financial institutions, notably passporting rights. 

 

Get connected…

LexTalk®Banking & Finance: a Lexis®PSL community
Collaborate and network with a community of expert lawyers

LexTalk® is a new online community forum which gives Lexis®PSL subscribers the opportunity to post questions, hold conversations, participate in discussions and share best practice. It has been designed to provide a secure place for legal professionals to discuss legal developments, offer and receive peer support, and gain a sense of up to date market practice and advances in real-time. You can access and post questions on all of the dedicated practice area forums, including a dedicated community for Lexis®PSL Banking & Finance.

Click here to sign up and meet like-minded community members, create a profile, connect, share, and start participating today! Alternatively, you can access LexTalk® on the key resources tab on the Banking & Finance home page.

 

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About the author:

Emma is head of the Banking and Finance team and the Finance Group at LexisNexis®UK.

Emma has wide-ranging experience in derivatives and capital markets with a particular emphasis on credit derivatives and structured products. Emma qualified as a solicitor with Allen & Overy LLP, working in the derivatives and structured finance teams in both their London and Paris offices before gaining experience with Deutsche Bank AG (advising the foreign exchange prime brokerage desk) and Crédit Agricole CIB (advising the fixed income and derivatives desk) before joining LexisNexis®.