The Alternative Reference Rates Committee—of which the American Bankers Association is a member—today released a new guide to published Secured Overnight Finance Rate averages. The guide is intended to provide market participants—especially nonfinancial corporates—with key information on the Libor transition, as certain tenors of Libor are scheduled to sunset on Dec. 31, 2021. The guide specifically focuses on the SOFR averages published by the Federal Reserve Bank of New York.
“This user-friendly guide provides important clarity on what the readily-available published SOFR Averages are, and how to use them, which is essential for borrowers at this stage of the LIBOR transition,” said ARRC Chairman Tom Wipf, who is also vice chairman at Morgan Stanley. “With less than a year left until no new LIBOR issuances, the ARRC aims to equip borrowers with the context they need to understand all the different types of SOFR-based loans they can potentially get from their lenders.”
