We’d be the first to acknowledge that transitioning from LIBOR to SOFR is hard. But LIBOR will end and we must prepare. Recognizing that, the September 5, 2019 Alternative Reference Rate Committee (“ARRC”) minutes introduced two tools to help ease the transition.
In June, the Alternative Reference Rates Committee (“ARRC”) – a group set up to develop potential new interest rate benchmarks – announced that a broad Treasuries repo financing rate was selected as the new preferred alternative reference rate for LIBOR. Following that announcement, Reuters and Business Insider reported that the new benchmark could replace LIBOR. And, following that was a flurry of calls to the LSTA asking whether LIBOR is going away.
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