3.23.21
On March 23, the Alternative Reference Rates Committee (ARRC) announced “it will not be in a position to recommend a forward-looking Secured Overnight Financing Rate (SOFR) term rate by mid-2021… (and) cannot guarantee that it will be in a position to recommend an administrator that can produce a robust forward-looking term rate by the end of 2021.” The ARRC is encouraging market participants to transition from LIBOR using tools available now such as SOFR averages and index data that can be applied in advance or in arrears, as described in the User’s Guide to SOFR.