Big Milestone in Libor Demise Has Barely Budged the Loan Market
- New loan sales can’t be tied to Libor from January 2022
- Just a few borrowers so far have used the SOFR benchmark
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The next major milestone in Libor’s years-long demise is only 3 1/2 months away, but the vital loan market has done very little to show it’s ready.
After Dec. 31, new financial products can’t be tied to the London interbank offered rate, a consequence of regulators wanting to extinguish Libor following a rigging scandal a decade ago.