As part of its ongoing work to facilitate the transition by financial market participants away from the London Interbank Offered Rate, the Alternative Reference Rates Committee today released a “starter kit” of resources on the Secured Overnight Financing Rate. SOFR is the ARRC’s preferred alternative to Libor, which is not guaranteed to be available beyond 2021.
The starter kit includes fact sheets on:
• The pending demise of Libor and the ARRC’s selection of SOFR as a preferred replacement.
• How SOFR works and common misconceptions about the rate.
• SOFR next steps, including best practices, recommended fallback language and a SOFR user’s guide.
The fact sheets complement a series of six webinars aired this summer and available for viewing.