Tag archives: LIBOR

Will Term SOFR become the leading US dollar lending benchmark in developing markets?

By Steve Chemaly on March 2, 2023 Posted in Banking

This blog was co-authored with Rory Scott and Lara Thom, Candidate Attorney’s In 2017, the Alternative Reference Rates Committee (ARRC) recommended the replacement of LIBOR with the Secured Overnight Financing Rate (SOFR). Since the proposed transition, developing markets have been rudderless regarding which benchmarks to apply. There are four types of SOFR that apply to … Continue reading

The decline of LIBOR and the new risk-free interest rates

By Steve Chemaly and Claire Friedman on March 12, 2020 Posted in Banking

The history of manipulation and scandals surrounding interbank offered rates (IBORs), for example LIBOR and JIBAR, has led to the shift toward Risk-Free Rates (RFRs), a shift which is primarily market led and remains uncertain. The transition to RFR’s rests on the fact that rates such as LIBOR are forward-looking interest rates, calculated using estimates … Continue reading