• BCMstrategy, Inc.

#QOTD -- SOFR moves

The U.S. election impacts many policy issues, but the transition away from LIBOR is not one of them. Earlier this week, the U.S. Treasury Department held its regularly scheduled meeting with the largest U.S securities industry trade association.

The minutes from that meeting indicate that the Treasury Department is actively considering issuing a SOFR-indexed floating rate note:

It does not generate many headlines, but the United States has been making steady progress concerning the shift to SOFR throughout 2020....despite the pandemic and despite the election. PolicyScope Platform data shows activity on this policy issue every month this year.

Relatively high activity levels at the start of the year did abate during the onset of the pandemic, but policymakers are now giving every indication that their initiatives will return to pre-pandemic levels as key implementation deadlines approach. Importantly, the activity levels cover far more issues than just the ISDA fallback provisions.

The PolicyScope Platform has been tracking Benchmark Reform issues since early 2020. Please contact us if you would like more information on how the PolicyScope Platform can help you and your team prepare dynamically for the transition away from LIBOR.