Search
 

After Libor, Get Ready for SOFR

Chosen by a special Federal Reserve committee as its preferred alternative to Libor, the Secured Overnight Funding Rate is tied to "the extremely liquid, high-volume repo market,” Mission Capital Advisors' Jillian Mariutti tells GlobeSt.com.

Photo of Jillian Mariutti “There was no surprise that Libor as we knew it would have to change,” Mariutti says.

NEW YORK CITY—Libor, an index that underpins $350 trillion in financial contracts, has been a benchmark for global borrowing for nearly half a century. But it will soon go the way of BOAC and the Beatles, two British institutions that were still recent history when Libor was devised. Will the sunset of Libor in 2021 plunge lenders and borrowers into darkness and confusion? And what will take its place?

In the view of Jillian Mariutti, director at Mission Capital Advisors, the answer to the first question is no, because the writing has been on the wall since the Libor manipulation scandal of 2012.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

More from this author

Recommended Stories

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.