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The brave new world of RFRs

21 February 2022 | London
Legal Briefings


LIBOR has almost been consigned to history for new transactions.  However, there are still some areas relating to the use of near risk-free rates (RFRs) where the market has not yet settled. 

Five tenors of USD LIBOR continue to be published and remain representative, but the new use of USD LIBOR is prohibited in most circumstances.  Various forms of SOFR are in use in the lending and bond markets, and the conventions around the use of term SOFR, in particular, are still nascent. 

Synthetic LIBOR continues to be published for one, three and six month sterling and yen LIBOR, however this is not available for use in new contracts in most circumstances.  It is intended to assist legacy transactions which were not actively moved to RFRs before 31 December 2021 and is not a long-term solution.  In this briefing we discuss these issues in more detail.

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