Managing the Transition from LIBOR to SOFR

Thursday, December 31, 2020 2:00 PM - 3:00 PM   iCalendar Central Standard Time

LIBOR is scheduled to sunset at the end of 2021. This change will impact nearly every bank in the U.S. as many loans and securities, as well as derivative contracts, are indexed to LIBOR. This session will introduce the alternative index proposed as the replacement rate, the Secured Overnight Financing Rate (SOFR). In addition, we will discuss the potential benefits and considerations of using SOFR. We will then cover what financial institutions have been doing with loan and derivative contracts to prepare for the market change. Finally, we will present what developments Chatham is seeing in the market. 

Outline and learning objectives:
• Introduce Alternative References Rate Committee (ARRC) and Secured Overnight Financing Rate (SOFR)
• Discuss transition timeline from LIBOR to SOFR
• Outline the differences between SOFR and LIBOR 
  Differences in calculation methodology
  Risk-free rate vs. Unsecured lending rate
  Supply and demand implications 
• Highlight what financial institutions have been doing to prepare for the change: 
  Loan language
  Derivatives language
  Loan operations
• Discuss SOFR’s influence on the derivatives market 
  Impact on current contracts
  Liquidity in SOFR based derivatives
• Describe what Chatham is seeing in the market 
  Trends in balance sheet hedging activity

Individual Fee (includes OnDemand access)
Member $99
NonMember $149

Greg Martell, Director, and Dave Sweeney, Managing Director, Chatham Financial Institutions

CEO, CFO, Treasury, Lending, Credit, Legal, Compliance