A deeper look at SOFR, which will likely be LIBOR’s replacement in the United States.
Following up on our transition primer, “Leaving LIBOR,” we take a deeper look at SOFR, which will likely be the replacement rate in the United States.
In this piece we discuss the differences between LIBOR and SOFR, how the SOFR market has developed since its inception in 2018, and the steps that must be taken to ensure a smooth transition away from LIBOR.
The global financial market is transitioning away from LIBOR – a momentous prospect that has raised questions, challenges and concerns. We look at the basics of the current LIBOR rate and usage, the steps underway to introduce a replacement, and what comes next.
Ask an investor how they’re feeling and they’re likely to echo the wary positivity of Larry David’s famous line on “Curb Your Enthusiasm”—“prett-ay, prett-ay, prett-ay good.”
Private debt has grown from niche asset class to a heavyweight due to multiple structural shifts in capital markets—and its growth has shifted the opportunity set for both investors and borrowers.