8.23.21
On August 23, top officials of the Treasury Department, Federal Reserve, Securities and Exchange Commission and Commodity Futures Trading Commission issued a letter to nonfinancial corporations addressing the ongoing LIBOR transition. The letter came after nonfinancial corporate trade groups had raised concerns around the lack of guidance with the transition, including challenges with finding lenders offering loan agreements based on SOFR. The current alternatives to LIBOR for new contracts, according to top officials, are not meeting the needs of nonfinancial corporations and are not widely available. The letter explains, “a smooth transition will be best supported if financial institutions offer alternatives to USD Libor [LIBOR] that meet borrower needs and if this is done in a timely fashion.”