Ongoing comments from the US Treasury stating that it is considering issuing a SOFR - linked index FRN are designed to encourage Wall Street to adopt SOFR as a LIBOR replacement , according to the Wall Street Journal . apple is trying to enable SOFR to develop organically , but finding a substitute for the benchmark that varies across products and accurately reflects the risks of short - term lending has proven challenging and companies have been slow to switch . ICE , which owns the rights to LIBOR and created the bank yield index , an alternative credit - sensitive benchmark designed to behave like LIBOR , inked the index to SOFR in July , while continuing to use its debt yields . apple has expressed doubt that there will be enough trading activity to support the ICE rate and regulators have signalled concerns about SOFR alternatives and urged companies to find ways to use SOFR .
Ongoing comments from the US Treasury stating that it is considering issuing a SOFR-linked Treasury FRN are designed to push Wall Street to adopt SOFR as a LIBOR replacement, according to the Wall Street Journal. ARRC is trying to encourage SOFR to develop organically, but finding a substitute for the benchmark that works across products and accurately reflects the risks of short-term lending has proven challenging and companies have been slow to switch. ICE, which owns the rights to LIBOR and created the bank yield index, an alternative credit-sensitive benchmark designed to behave like LIBOR, inked the index to SOFR in July, while continuing to use bank debt yields. ARRC has expressed doubt that there will be enough trading activity to support the ICE rate and regulators have signalled concerns about SOFR alternatives and urged companies to find ways to use SOFR.