The Alternative Reference Rates Committee last week published market indicators it will consider in recommending a forward-looking Secured Overnight Financing Rate term rate to support the transition away from LIBOR.
Details: The indicators are designed to measure progress in establishing deep and liquid SOFR derivatives and cash markets to support a robust and stable term rate.
Background: ICBA serves on the ARRC—which is implementing the LIBOR transition and recommending SOFR as the alternative rate.
More: The ARRC in March said it will not be positioned to recommend a forward-looking SOFR term rate by mid-2021, so it encourages market participants to continue to transition from LIBOR using currently available tools.