Fed Ditches Plan to Promote SOFR in Main Street Lending Program

The Wall Street Journal reported that the Federal Reserve will not use the Main Street Lending Program to promote SOFR, its LIBOR replacement of choice.

The Journal noted that the move is indicative of the trouble the financial system faces while attempting to shift away from LIBOR to a new benchmark.

Prior to COVID-19, the Journal noted that many doubted the ability of borrowers and lenders to adopt SOFR and these doubts have intensified as it adds a layer of complexity to stimulus efforts.

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.