In a perfect world, the respective parties to loan documents could simply agree that an alternate rate is needed. But the world is not perfect.
The SOFR referencing rate is estimated to cover interest rate swaps on more than $80 trillion worth of notional debt.
Swap fraud; wind turbine con; holding firm on LIBOR switch; and more.
With Libor’s days numbered, companies should start transitioning immediately to lessen the impact of adopting new reference rates.
The new SOFR interbank lending rate is "going to be based on a very, very robust set of transactions" and could eventually replace Labor.
