SIFMA hosted a briefing on July 15 at which presenters from the
NY Fed, FCA, ARRC, Wells Fargo, Freddie Mac, Fannie Mae and SIFMA
discussed the progress that has been made thus far in preparing for
the transition from LIBOR to alternative reference rates, including
SOFR and SONIA, and the lift that is still required. Below is a
bullet form summary of the key takeaways.
Some signs of progress...
- The UK alternative reference rate, SONIA, is now the cash
market standard in the U.K. and for two-thirds of new public
securitization deals.
- SOFR markets also continue to grow.
- The ARRC has published a Consultation and White Paper for U.S.
residential mortgages.
- An ARRC Consultation for other consumer products will
follow.
