The Alternative Reference Rates Committee today published a set of frequently asked questions addressing its recent best practices recommendations related to scope of use for the SOFR Term Rate.
In a letter to nonfinancial corporations today, the heads of the Treasury Department, Federal Reserve, Securities and Exchange Commission and Commodity Futures Trading Commission addressed the ongoing Libor transition, noting that “a smooth transition will be best supported if financial institutions offer alternatives to USD Libor that meet borrower needs and if this is done in a timely fashion.”
Community banks look to the senior loan market for solutions to liquidity, competition, yield and growth.
The Alternative Reference Rates Committee today welcomed the prototype publication launch of its recommended spread adjustments and spread adjusted rates for cash products by Refinitiv—which it selected in March to publish Libor cash fallback spreads and rates.
As the Libor endgame continues to count down, what rates are America’s large and midsize banks planning to adopt to update their risk models?
Half or more of banks surveyed plan to use the SOFR daily, SOFR term structure, SOFR arrears compounding, and/or BSBY reference rates to replace Libor.
In a highly anticipated move today, the Alternative Reference Rates Committee formally recommended CME Group as the administrator for a Secured Overnight Financing Rate term rate—a major milestone in the transition away from Libor.
The American Bankers Association and a coalition of financial trade groups wrote in support today of the Adjustable Interest Rate (Libor) Act to address “tough legacy” contracts that currently reference Libor but lack adequate fallback language and can’t be amended to add it.
With the transition away from Libor now well underway, BAFT, the American Bankers Association subsidiary association for international transaction banking, and two other trade finance groups today published a new report discussing potential implications for the trade finance industry.
Today marked the start of the first phase of the Commodity Futures Trading Commission’s “SOFR First” initiative, which it recommended for switching trading conventions from Libor to the Secured Overnight Financing Rate, the Alternative Reference Rates Committee’s preferred Libor alternative, and by some measures, SOFR swaps accounted for 50% of total activity.