The Alternative Reference Rates Committee ("ARRC") released a new guide describing how to use the published Secured Overnight Finance Rate ("SOFR") averages in financial products. ARRC stated that the Guide to Published SOFR Averages was developed after a March 2021 survey of nonfinancial corporates found that 90 percent of respondents wanted to be offered SOFR-based rate choices. The guide is meant to inform borrowers of the different types of SOFR-based loans that their lenders could offer.
The guide provides details on the methodology for publication of SOFR averages, examples of how the averages could be used in financial products, a comparison of SOFR term rates, and excerpts from the March 2021 borrower survey.
Primary Sources
- ARRC Press Release: ARRC Releases Guide to Published SOFR Averages
- ARRC Guide to Published SOFR Averages
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