- LIBOR is scheduled to phase out by the end of 2021
- The primary reason for LIBOR’s replacement has to do with the outdated methodology which consists of a panel of banks that report their expected funding rates
- US officials favor reliance on the Secured Overnight Financing Rate (SOFR), and rates based on actual transaction data in other major countries
- Differences between LIBOR and SOFR include security and tenor
- To ensure a smooth transition Benefit Street Partners is working towards including fallback language in all its credit documents
