Jeffrey Armstrong writes about adopting a LIBOR replacement with a careful understanding of the Secured Overnight Financing Rate’s (SOFR) performance issues, comprehensive price term negotiation, and consideration of alternative benchmarks.

US bank officials have blamed the lack of LIBOR transition progress in part on new alternative benchmarks, and credit-sensitive benchmarks in particular. But the credit-sensitive American Interbank Offered Rate (Ameribor), which is generated on a competitive, multilateral trading platform, behaved robustly at the peak of the COVID-19 crisis and demonstrates price efficiency consistent with its strong growth in size, scope, technology, and membership.

Read the full article in Law360.