As the viability of LIBOR continues to be called into question, the Alternative Reference Rates Committee (the “ARRC”) recently selected SOFR, a broad measure of overnight Treasury financing transactions, as its recommended replacement for the U.S. dollar LIBOR. While SOFR is thought to be the most robust and transaction-based rate currently available, making it less susceptible to manipulation, it is not an exact replacement for LIBOR. This article briefly discusses the advantages and challenges associated with utilizing SOFR as an alternative to LIBOR. However, it remains to be seen how the ARRC will reconcile the differences between LIBOR and SOFR. Click here to read the full article.