Lawyers
Litigation partner Jane O’Brien appeared in an article in S&P Global Market Intelligence on the transition to alternative interest rate benchmarks in light of the retirement of LIBOR, the London Interbank Offered Rate. In the article, “Banks Adopting Alternative Rates, Managing Old Contracts as LIBOR Usage Fades,” Jane discusses the rationale behind the adoption of SOFR, or the secured overnight financing rate, as an alternative to LIBOR.
"There's sort of inherent skepticism about a rate that has been based on a relatively small number of transactions but is carrying the weight of a huge amount of reference transactions, if you will. I think that was really perceived to be the fundamental flaw with LIBOR,” Jane told S&P Global. “The volume of transactions that go into calculating SOFR is so enormous that there's a comfort that it's based on real, identifiable transactions as opposed to more speculative, a small number of transactions."
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