Navigating the LIBOR Transition and Succeeding in a SOFR World with Chatham Financial

With LIBOR ending on June 30, 2023, trillions of dollars in floating-rate debt and derivatives will transition to alternative reference rates — SOFR for most U.S. borrowers. For the many corporates electing standard fallback language, this can create a material mismatch between the debt and derivatives, along with the risk of falling out of hedge accounting — even if you elected ASC 848.