{"id":346,"date":"2021-06-02T13:07:43","date_gmt":"2021-06-02T17:07:43","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/bankinglaw\/?p=346"},"modified":"2021-06-02T13:07:43","modified_gmt":"2021-06-02T17:07:43","slug":"libor-transition-term-sofr-coming-soon","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/bankinglaw\/2021\/06\/02\/libor-transition-term-sofr-coming-soon\/","title":{"rendered":"LIBOR Transition: Term SOFR Coming \u201cSoon\u201d"},"content":{"rendered":"

After the ARRC announced<\/a> a week before the Memorial Day weekend that market participants can plan on a recommendation of CME Group as the administrator of a term SOFR reference rate \u201csoon\u201d, \u00a0it is a bit optimistic to expect that we would return from the holiday to a formal announcement on Term SOFR. Nonetheless, it is an encouraging development in what has been a rollercoaster ride on the fate of Term SOFR. In March of this year, it seemed as though Term SOFR might not come until 2022, with some dire predictions that it might not ever truly develop.<\/p>\n

Exactly what \u201cplans\u201d market participants should make is still an open question. Based on developments earlier this year<\/a> and the ARRC\u2019s March announcement, some lenders are well on their way to originating daily SOFR loans even though they may have preferred to use Term SOFR. Term SOFR still is not here yet, and it remains to be seen what limitations regulators and the ARRC may put on it. In that regard, the ARRC\u2019s key principle that Term SOFR should have a \u201climited scope of use\u201d may cause some lenders to remain cautious. To hear company-side organizations, borrowers are all in favor of SOFR, including Term SOFR, if only they could find lenders willing to make SOFR loans at this point.<\/p>\n

Our recent Alert<\/a> explores some of the practical considerations surrounding the ARRC\u2019s announcement.<\/p>\n

 <\/p>\n

Duane Morris\u2019 LIBOR Transition Team:\u00a0\u00a0Roger S. Chari<\/a>, Chair,\u00a0Joel N. Ephross<\/a>,\u00a0Amelia (Amy) H. Huskins<\/a>,\u00a0Phuong (Michelle) Ngo<\/a>, and\u00a0Han Wang<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

After the ARRC announced a week before the Memorial Day weekend that market participants can plan on a recommendation of CME Group as the administrator of a term SOFR reference rate \u201csoon\u201d, \u00a0it is a bit optimistic to expect that we would return from the holiday to a formal announcement on Term SOFR. Nonetheless, it … <\/p>\n

Continue reading “LIBOR Transition: Term SOFR Coming \u201cSoon\u201d”<\/span><\/a><\/p>\n","protected":false},"author":414,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[253,379,240,238,259,375,248,247,250,377,378,242,265,252,227,228,243,236,323,245,241,256,257,206,266,237,376,260,271,258],"ppma_author":[346],"class_list":["post-346","post","type-post","status-publish","format-standard","hentry","category-general","tag-amelia-huskins","tag-amendment","tag-amy-huskins","tag-arrc","tag-benchmark-replacement","tag-bilateral-loan","tag-chari","tag-duane-morris","tag-ephross","tag-fallback","tag-fallback-language","tag-han-wang","tag-hardwired-language","tag-huskins","tag-joel-ephross","tag-libor","tag-libor-replacement","tag-libor-transition","tag-loan-amendment","tag-london-interbank-offered-rate","tag-michelle-ngo","tag-ngo","tag-phuong-ngo","tag-roger-chari","tag-secured-overnight-financing-rate","tag-sofr","tag-syndicated-loan","tag-term-sofr","tag-usd-libor","tag-wang"],"authors":[{"term_id":346,"user_id":414,"is_guest":0,"slug":"rschari","display_name":"Roger S. Chari","avatar_url":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-content\/uploads\/sites\/14\/2020\/02\/chariroger-125x150.jpg","author_category":"","last_name":"Chari","first_name":"Roger","job_title":"","user_url":"https:\/\/www.duanemorris.com\/attorneys\/rogerschari.html","description":"Read Roger's bio.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/users\/414"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/comments?post=346"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/346\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/media?parent=346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/categories?post=346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/tags?post=346"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/ppma_author?post=346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}