Keep Calm and Transfer: Considerations Ahead of the LIBOR Index Transfer
LIBOR has been the market standard for adjustable-rate mortgages for as long as most of us can remember. Consequently, transitioning to the new SOFR index in the United States, and to SONIA in the UK and Europe, is forcing many CRE players to exercise muscles that haven’t been used lately, and is dragging many more into completely uncharted waters. While providers of capital prepare for the eventual shift away from LIBOR, many are feeling relief in light of the recently announced extension of several US LIBOR tenors. Others, by contrast, would have rather seen things move forward as scheduled....