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On July 29, 2021, the Alternative Reference Rates Committee ("ARRC") formally recommended the CME Group's forward-looking term SOFR rates ("Term SOFR").

It is starting to feel as if we are nearing the end of a long climb, in fact the end of a long period of uncertainty, for financial institutions and businesses alike, on how to deal...

The ARRC officially recommended the usage of SOFR term rates. Market participants should evaluate how and when to adopt Term SOFR and take steps to comply with requirements. We provide some background on Term SOFR and its development and discuss practical considerations.

To embed, copy and paste the code into your website or blog: On March 30, 2021, the LMA published its exposure draft RFR documentation as recommended forms, and updated the documentation to reflect, among other things, the Sterling Risk-free Rate Working Group’s (the Working Group) updated conventions. The LMA also replaced their single currency SONIA and SOFR exposure drafts with two recommended form single currency RFR facility agreements, and updated their RFR terms. Recommended Forms The LMA first published their exposure draft multicurrency term and revolving facilities agreement inco...

The LMA Note also raises whether a Credit Adjustment Spread ( CAS) will be used in pricing to balance the need for economic parity with LIBOR when switching to an RFR, but a CAS is less likely to be used in a new Sterling LIBOR transaction. 3. Read the FMSB Draft The FMSB Draft sets out eight draft Core Principle for the use of TSRRs, and the key message seems to be that lenders and market participants should have a very good reason for using a TSRR! It is more eloquently put in Core Principle 1: “ Market participants should assess, in a manner consistent with this Standard and the RFR Work...