The administrator of the London Interbank Offer Rate (LIBOR) has extended the termination
of some tenors until mid-2023 to allow users more time to change to
another reference rate. However, the 1-week and 2-month U.S. dollar
LIBOR rates will end on December 31, 2021. In the U.S., SOFR appears to
be the new standard, but SOFR is not without it's own issues. SOFR does
not allow treasurers to estimate forward interest rates, a major
drawback. Even with this shortcoming, companies need to transition from
LIBOR before it runs out.
Wednesday, March 10, 2021
LIBOR Termination Extended
