Is your SOFR readiness being put to the test? Let's talk about post-transition issues and challenges

It has been over six months since the five final US dollar Libor settings were published for the last time on June 30, 2023. This marked the conclusion of a long journey for the financial markets as market participants entered a future with alternative risk-free rates, such as the secured overnight financing rate (SOFR) for dollar-denominated derivatives and loans.

As expected, working with SOFR is producing several challenges for institutions. In this white paper, five Numerix experts discuss the issues tied to SOFR impacting the market. These include benchmark challenges, curve building, operational challenges, market data quality and availability, system validation and the impact of SOFR on bonds and loans.