SOFR credit debate is “hindrance” to corporate transition

Libor Telethon 2020: NACT chair calls for clear path towards SOFR adoption before 2023 switch-off

Debate over a credit-sensitive alternative to the secured overnight financing rate, or SOFR, is hindering the transition from Libor, according to a senior corporate treasury official.

Tom Deas, chairman of the National Association of Corporate Treasurers, said the credit-sensitivity discussion “really is a hindrance at this point”.

He added corporate treasurers have swathes of Libor-linked commercial transactions with customers, suppliers and employees – all of which need to be transitioned.