The LIBOR-SOFR Spread Adjustment: Current Approaches and Implications for Financial Institutions

The London Interbank Offered Rate (LIBOR) has historically been utilized as a benchmark for short-term lending for banks in contracts including floating rate notes, business and consumer loans, securitizations and derivatives. In 2017, the Alternative Reference Rates Committee (ARRC) recommended the Secured Overnight Financing Rate (SOFR) as its replacement for LIBOR, and LIBOR is scheduled to be phased out by the end of 2021.

CONTRIBUTORS

GET IN
TOUCH
© Dixon Hughes Goodman LLP. All rights reserved.
DHG is registered in the U.S. Patent and Trademark Office to Dixon Hughes Goodman LLP.
praxity