LIBOR Replacement: SOFR, So Good!

November/December 2019

Chris Couch (Birmingham) authored “LIBOR Replacement: SOFR, So Good!” in the Alabama Bankers Association November/December 2019 Board Briefs.

LIBOR (London Inter-Bank Offered Rate), the historic benchmark rate at which leading London banks borrowed from each other on a short-term basis, is being “phased out” and may not be available after 2021. Chris discusses the Secured Overnight Lending Rate (SOFR), a replacement index intended to address risk in existing loan agreements and to minimize the disruption associated with LIBOR’s end.

Read the full article here.

Insights

Attorney Published Article

Federal Agencies Issue Statement on LIBOR Transition

December 2021

On November 30, 2020, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (collectively, the agencies) issued a Statement encouraging banks to transition away from U.S. dollar (USD) LIBOR as soon as practicable. The agencies stated that failure to prepare for disruptions toMore

Attorney Published Article

Transitioning away from Libor

August 21, 2020

Libor, the London Interbank Offered Rate at which leading London banks borrowed from each other on a short term, unsecured basis, is being “phased out” and may not be available after 2021. Libor has long been used in the United States for rate-setting, so the phase-out has implications for all manner of transactions and forMore