August 10, 2022 - The good news on LIBOR transition is that corporate loan market has largely stopped originating new loans on LIBOR and nearly all new loans are originated on SOFR. (The bad news is that the LIBOR remediation pile remains daunting.)

The shift to SOFR originations was predicated on the existence of Term SOFR and the ARRC’s recommendation of CME Forward Looking Term SOFR for business loans. To help our members with transition, we have educational podcasts on CME Term SOFR on the LSTA’s University podcast page.

That said, CME Term SOFR is not the only TERM SOFR in existence – and lenders should know that. In fact, the ICE Benchmark Administration (IBA) has a Term SOFR as well. This week, the LSTA posted a podcast featuring IBA explaining their ICE Term SOFR. We believe this information helps market participants understand their Term SOFR alternatives – and that’s good for everyone.