3.29.21
On Monday, March 29, the Alternative Reference Rates Committee (ARRC) announced their Options for Using SOFR in New ABS, MBS and CMBS Products white paper identifying the key considerations relevant to developing new issuances of securitized products based on the Secured Overnight Financing Rate (SOFR). The paper formulated by the SWG, which SFA co-chairs, also describes one option for how new issuances of ABS, MBS and CMBS products could incorporate the use of SOFR based upon the use of 30-day Average SOFR, with a monthly reset, set in advance of the interest accrual period.