In the Press
April 13, 2020

Coronavirus Pandemic Could Slow Loan Market Transition From Libor (Reuters)

Professionals

A health emergency of unprecedented proportions has added another layer of complexity to the US loan market’s transition away from a key lending benchmark used to set interest payments on trillions of dollars of investments as the deadline to move to a new rate rapidly approaches. A group backed by the Federal Reserve (Fed) has recommended a shift to the Secured Overnight Financing Rate (SOFR), a broad measure of the cost of borrowing cash overnight collateralized by US Treasury securities. Goodwin partner Kevin Grumberg, who practices in the firm’s Goodwin’s Private Equity group and Debt Finance practice, discusses what the absence of a term SOFR means right now. Read the article in Reuters here.