2.21.22
The Wall Street Journal reports that SOFR is leading the way as the benchmark replacement rate for LIBOR among U.S. banks and financial institutions. Sales of corporate loans and derivatives tied to the overnight rate have soared in 2022. U.S. companies last month sold 61 leveraged loans tied to SOFR totaling over $66 billion, which is up from around $3.9 billion raised across four deals in December 2021. Regulators are continuing to work with banks to promote the broader adoption of SOFR. However, the transition has proven to be slower than expected even amid the deadline at the end of last year preventing banks from issuing new debt tied to LIBOR.