SOFR – The Interest Rate Index for US$ Transactions

August 14 2020 16:00 - 17:00 UTC

Since the Federal Reserve began to express concerns about the independence, accuracy, and integrity of LIBOR in 2008, the need to create a US Dollar ($USD) based index was identified as a future goal. Further issues with LIBOR over the next several years (and its planned ‘sunset’ in 2021) drove The Federal Reserve Board – through the New York Branch – to the creation of the Alternative Rates Reference Committee (ARRC) in 2014. In 2017, they announced that a new index – SOFR – was their recommended alternative.
Since there are presently over $200T in financial instruments that are keyed to LIBOR, the switch to SOFR should have already begun on new instruments. What is it, what does it do, and how does it differ from the rates we have been using?

The objective of this session is to not only introduce/reinforce your understanding of SOFR but enable you to be proactive in dealing with customers and prospects. As we begin working with this new index, we will not only look at how we got to where we are, but also where we are headed.

While we will touch on the technical nuts and bolts, the primary focus will be:

  • Variable Rates – a brief background
  • What is LIBOR, and where is it going?
  • How did SOFR come about, and what is it?
  • How is SOFR different from LIBOR?
  • What those differences mean for you and your customers
  • Next Steps
  • Resources available

CPE Information:
• Prerequisites: N/A  • Advanced Preparations: N/A  
• Course Level: Basic • Group Internet Based Training

CBANC Network is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

  • Interest Rate
  • Customers
    • Interest
RESOURCES
  • SOFR - Recommended LIBOR Replacement 08142020.pdf
    Attendees Only
VIDEO REPLAYS

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