LIBOR

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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…

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…