8.27.21
On August 27, the Alternative Reference Rate Committee (ARRC) released FAQs outlining the scope of use of SOFR Term Rate. These FAQs build on the ARRC’s formal recommendation of the SOFR term rate and key principles published in April 2021. Taking into account input from market participants, the ARRC recognized difficulties still exist in adapting to an overnight rate and so these FAQs answer general questions on the scope of use and highlight particular areas where adopting the SOFR Term Rate will be helpful to support a smooth transition away from USD LIBOR.
To access more key resources on the LIBOR transition, click here.