Libor Transition Presses On Even With SOFR Term Rate Uncertain

The group steering a U.S. replacement for the beleaguered London interbank offered rate has said it can’t guarantee a vital last step in the process will happen this year as planned, spurring uncertainty about plans to wean the financial system off the world’s benchmark.

The Alternative Reference Rates Committee, a collection of public- and private-sector participants tasked with overseeing the Libor transition in the U.S., said this week that it can’t recommend a forward-looking term rate for the Secured Overnight Financing Rate by mid-2021, and it can’t guarantee one even by year-end because of insufficient liquidity in derivatives tied to ...