LIBOR’S Last Leg: Legislation and Synthetic LIBOR Ease the Transition to SOFR
Author: Amy McDaniel Williams.; Michael Kruse.; Tina Locatelli.
Source: Volume 39, Number 06, June 2023 , pp.69-73(5)
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Abstract:
On July 3, 2023, LIBOR, the standard used for decades to set variable interest rates for trillions of dollars in financial instruments, will disappear. The authors describe actions taken by the U.S. government and regulators to mitigate the potential effects of the transition to a new benchmark and some of the remaining sources of uncertainty concerning the end of LIBOR.Keywords: London Interbank Offered Rate Cessation; LIBOR Act (12 U.S.C. § 5801 et seq); SOFR-Based Benchmark Replacement Rates; Legacy Contracts; “Synthetic” USD LIBOR
Affiliations:
1: Hunton Andrews Kurth LLP; 2: Hunton AK; 3: Hunton AK.