Interest Rates

Ready or not, businesses must transition financial contracts away from the benchmark rate. Here's an update on what to expect.

The U.S. Congress agrees to a solution for the LIBOR crisis, which would automatically transition contracts to a new benchmark.

The Fed won't consider interest-rate increases until the labor market heals further, even though inflation may run hot for months.

In fact, Fed Vice Chair Richard Clarida believes the conditions required to begin tapering Fed bond-buying have "all but been met."

The Walker & Dunlop loan will use SOFR from the start, rather than launching with LIBOR and switching benchmarks after 2021.

Even as the Fed considers tapering asset purchases and raising interest rates, its improved communications make a 2013-like market response unlikely.

The Federal Reserve warns of market risk in its response to a lawsuit by consumer borrowers and credit card users who are seeking an injunction to end LIBOR.

SOFR is replacing LIBOR as the floating leg on all linear swaps, swap spreads, and curve trades in the interdealer market.