Homework: Musyokiness- Transition from LIBOR to SOFR
Why are you doing this homework?
The London Interbank Offered Rate (LIBOR), has been used widely to set the rates for many financial transactions, such as business loans, corporate bonds and derivatives. LIBOR is scheduled to be phased out in 2021 and lose its status as the global interest rate benchmark and be replaced in the US with the Secured Overnight Financing Rate (SOFR). As a future business professional you will need to understand the challenges of this transition and their impact in both financial and non financial corporations. That knowledge will allow you to navigate easier these areas and contribute in finding ways to benefit from managing these developments.
What are you going to do?
I. Make at least one, 150 word original post discussing one of the following topics:
• Why is LIBOR been replaced?
• What are the key differences between SOFR and LIBOR?
• How are banks and non-financial companies preparing for the transition to SOFR?
• Which institutions have started using SOFR in their loan extensions?
• Look for recent articles at financial periodicals that discuss this issue and provide a brief summary of your findings.
II. List your resource(s) and include one lesson learned that can be useful in the future.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.