SOFR

Thirty Capital Financial's SOFR With Ease™ Creates the First and Only Online SOFR Based Interest Rate Cap Calculator

Tuesday, November 17, 2020 - 3:12pm

CHARLOTTE, N.C., Nov. 17, 2020 /PRNewswire/ --Thirty Capital Financial's SOFR With Ease announced the launch of its newest web-based interest rate cap calculator tied to SOFR.

Key Points: 
  • CHARLOTTE, N.C., Nov. 17, 2020 /PRNewswire/ --Thirty Capital Financial's SOFR With Ease announced the launch of its newest web-based interest rate cap calculator tied to SOFR.
  • SOFR With Ease is an advisory service firm that offers expert interest rate hedging services and assists commercial real estate customers in navigating the transition from LIBOR to SOFR.
  • The new online calculator is the first and only SOFR cap calculator created.
  • Users of the calculator can receive an indication of a current SOFR Rate Cap and a side-by-side price comparison to a LIBOR Cap instantly.

Federal Home Loan Bank of Atlanta Announces Third Quarter 2020 Operating Highlights

Thursday, October 29, 2020 - 6:51pm

ATLANTA, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended September30, 2020.

Key Points: 
  • ATLANTA, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended September30, 2020.
  • Net income for the third quarter of 2020 was $56 million, a decrease of $20 million compared to net income of $76 million for the third quarter of 2019.
  • Beginning in March of 2020 and continuing through the third quarter of 2020, conditions in the financial markets have been impacted by the global pandemic associated with COVID-19.
  • For comparative purposes, the Banks ROE spread to average SOFR for the third quarter of 2020 was 386 basis points.

Freddie Mac Completes First Single-Family Credit Risk Transfer Offering Indexed to SOFR

Friday, October 16, 2020 - 10:14pm

McLEAN, Va., Oct. 16, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today that it has priced its $1.086 billion STACR REMIC 2020-DNA5 offering, its first Single-Family credit risk transfer (CRT) offering tied to the Secured Overnight Financing Rate (SOFR).

Key Points: 
  • McLEAN, Va., Oct. 16, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today that it has priced its $1.086 billion STACR REMIC 2020-DNA5 offering, its first Single-Family credit risk transfer (CRT) offering tied to the Secured Overnight Financing Rate (SOFR).
  • Once term SOFR is ready and administratively feasible, Freddie Mac expects to cease new issuance using a compound average of SOFR and to solely use term SOFR.
  • Freddie Mac also retains a portion of the risk in the class M-1, M-2, B-1, and B-2 tranches.
  • Freddie Macs Single-Family CRT programs transfer credit risk away from U.S. taxpayers to global private capital via securities and (re)insurance policies.

FVCBankcorp, Inc. Announces Completion of $20 Million Subordinated Notes Offering

Tuesday, October 13, 2020 - 8:23pm

FVCBankcorp, Inc. (NASDAQ:FVCB) (the Company) today announced the completion of its private placement of $20 million of its 4.875% Fixed to Floating Rate Subordinated Notes due 2030 (the Notes) to certain qualified institutional buyers and accredited investors.

Key Points: 
  • FVCBankcorp, Inc. (NASDAQ:FVCB) (the Company) today announced the completion of its private placement of $20 million of its 4.875% Fixed to Floating Rate Subordinated Notes due 2030 (the Notes) to certain qualified institutional buyers and accredited investors.
  • This offering was oversubscribed which demonstrates the confidence our investors have in our continued success.
  • The Notes have a maturity date of October 15, 2030 and carry a fixed rate of interest of 4.875% for the first five years.
  • Thereafter, the Notes will pay interest at 3-month SOFR plus 471 basis points, resetting quarterly.

Best’s Commentary: LIBOR Transition Poses Operational and Legal Challenges for Insurers

Tuesday, October 13, 2020 - 2:45pm

A review of AM Best-rated insurer debt, as detailed in a Bests Commentary, titled, LIBOR Transition Poses Operational and Legal Challenges for Insurers, found that nearly 80% of USD debt with LIBOR provisions will mature after year-end 2021, when LIBOR is no longer in use.

Key Points: 
  • A review of AM Best-rated insurer debt, as detailed in a Bests Commentary, titled, LIBOR Transition Poses Operational and Legal Challenges for Insurers, found that nearly 80% of USD debt with LIBOR provisions will mature after year-end 2021, when LIBOR is no longer in use.
  • Other issues include term structures for new reference rates, market liquidity, capital requirements and consistent supervisory guidance to eliminate cross-border issues.
  • The transition from LIBOR to the Secured Overnight Financing Rate (SOFR) will affect both sides of insurers balance sheets, as it affects assets and liabilities.
  • Given the sheer volume of transactions and the limited time remaining before LIBOR disappears, insurers will face numerous challenges during the transition period.

Automated Financial Systems, Inc. Supports All SOFR Rate Methods!

Tuesday, September 22, 2020 - 3:17pm

Today, Automated Financial Systems, Inc. (AFS) announced the completion of full support for the new SOFR compounding in arrears rate methods.

Key Points: 
  • Today, Automated Financial Systems, Inc. (AFS) announced the completion of full support for the new SOFR compounding in arrears rate methods.
  • During this time, we have been working hard not only to codify the rate methodology, but to ensure AFS systems were ahead of the curve in supporting the final recommendations.
  • Exemplifying the inherent flexibility and agility of AFS solutions, clients have had the ability to support Compounded in Advance, Forward-Term SOFR, and Simple Daily SOFR in Arrears from the start.
  • The code delivery for both methods (rate and balance) for Compounding in Arrears is available now.

SOFR With Ease™ Launches As Commercial Real Estate Service To Assist With LIBOR Transition

Wednesday, September 9, 2020 - 3:12pm

CHARLOTTE, N.C., Sept. 9, 2020 /PRNewswire/ --Thirty Capital Financial,a leading commercial real estate finance and debt management company, announced the launch of its newest company, SOFR With Ease (SWE).

Key Points: 
  • CHARLOTTE, N.C., Sept. 9, 2020 /PRNewswire/ --Thirty Capital Financial,a leading commercial real estate finance and debt management company, announced the launch of its newest company, SOFR With Ease (SWE).
  • SWE provides interest rate hedging services and can help clients navigate the transition from LIBOR to SOFR.
  • "We have ~16 months until LIBOR is expected to expire, and we're already assisting clients with custom risk assessments of their portfolios.
  • SOFR With Ease is the newest addition created to address our client's LIBOR transition and Hedging needs.

FB Financial Corporation Announces Completion of FirstBank’s $100 Million Subordinated Notes Offering

Monday, August 31, 2020 - 9:30pm

FB Financial Corporation (NYSE: FBK) (FB Financial), parent company of FirstBank, today announced the completion of FirstBanks private placement of $100 million of its 4.50% fixed-to-floating rate subordinated notes due 2030 (the Notes) to certain qualified institutional buyers and institutional accredited investors (the Private Placement).

Key Points: 
  • FB Financial Corporation (NYSE: FBK) (FB Financial), parent company of FirstBank, today announced the completion of FirstBanks private placement of $100 million of its 4.50% fixed-to-floating rate subordinated notes due 2030 (the Notes) to certain qualified institutional buyers and institutional accredited investors (the Private Placement).
  • As provided in the Notes, under specified conditions, the interest rate on the Notes during the Floating Rate Period may be determined based upon a rate other than Three-Month SOFR.
  • The Kroll Bond Rating Agency assigned an investment grade rating of BBB to the Notes.
  • FB Financial Corporation (NYSE: FBK) is a bank holding company headquartered in Nashville, Tennessee.

KBRA Releases the Bank Treasury Newsletter, the Bank Treasury Chart Deck, and Bank Talk: The After-Show

Wednesday, August 19, 2020 - 10:28pm

Kroll Bond Rating Agency (KBRA) releases this months edition of the Bank Treasury Newsletter, the Bank Treasury Newsletter Chart Deck, and Bank Talk: The After-Show.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases this months edition of the Bank Treasury Newsletter, the Bank Treasury Newsletter Chart Deck, and Bank Talk: The After-Show.
  • The deluge of deposit inflows since the onset of the pandemic has slowed in the last month, which may help relieve the dilutive pressures on bank net interest margin (NIM) and profitability.
  • The relationship between LIBOR-OIS and SOFR has flipped over recent months, coinciding with changes in the level of bank excess reserves.
  • Finally, this months edition of Bank Talk: The After-Show discusses the industrys struggle to leverage efficiency gains with profitability under pressure.

Federal Home Loan Bank of Atlanta Declares a 4.35% Dividend for Second Quarter 2020

Thursday, July 30, 2020 - 6:10pm

ATLANTA, July 30, 2020 (GLOBE NEWSWIRE) -- The Board of Directors of the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) today approved a second quarter 2020 cash dividend at an annualized rate of 4.35 percent.

Key Points: 
  • ATLANTA, July 30, 2020 (GLOBE NEWSWIRE) -- The Board of Directors of the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) today approved a second quarter 2020 cash dividend at an annualized rate of 4.35 percent.
  • The Federal Home Loan Bank of Atlanta is committed to maintaining a financially stable cooperative, and despite these challenging times we are proud to return value to our members through this second quarter dividend, said FHLBank Atlanta Chair of the Board of Directors, Rick Whaley.
  • The dividend rate is 3.75 percentage points over the daily average three-month LIBOR yield for the second quarter of 2020, and 4.30 percentage points over the daily average Secured Overnight Financing Rate, also known as SOFR, for the second quarter of 2020.
  • FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System.