While many of us may be sneaking in one final summer vacation, the ARRC showed no signs of a slowdown as they formally recommended the CME Term SOFR Rates. Issues with SOFR aside, it looks like the rate really is here to stay. Read more about the latest developments from Dechert’s LIBOR task force in
Term SOFR
The Powers That Be Are Rallying Around SOFR and That’s a Mistake
To my gentler readers, first an apology for this interregnum in publication. I’ve been sitting on this commentary like a hen on an egg for weeks. All I can say is having to work for a living gets in the way of writing about interesting stuff.
It’s now July and supposedly the transition from LIBOR to SOFR is almost already a done deal. Anyone notice that happening? Not to bury the lead but it hasn’t happened. Note that even the ARRC, between harrumphs about the slow take-up of SOFR products, has said that MAYBE they’ll let folks use Term SOFR soon (although they are still being a bit cagey on when and, perhaps more importantly, who will be given that privilege). That’s not good if we’re gonna base an entire floating rate marketplace on SOFR.Continue Reading The Powers That Be Are Rallying Around SOFR and That’s a Mistake