Fortunately, the path has become clearer in recent months, with
abundant guidance and tools available in the market.
It's not even Memorial Day yet, and it seems like there have
been more developments in the last four months than in the rest of
the four years since the Financial Conduct Authority (FCA) announced that
it would no longer compel panel banks in the London interbank
market to sustain LIBOR after 2021.
Whether a lender has been testing the waters with SOFR loans
since last year, adding benchmark replacement language in its loan
agreements, or simply relying on old fallbacks to the prime rate
(or no fallback), much work remains to be done to transition
successfully from LIBOR. Fortunately, the path has become clearer
in recent months, with abundant guidance and tools available in the
market.
