- Citigroup ( NYSE: C ) provided notice that debt and other securities that it has issued based on USD LIBOR (London Interbank Offer Rate) and that won't mature before the U.K. Financial Conduct Authority stops publishing USD LIBOR settings will be replaced with the CME Term SOFR (Secured Overnight Financing Rate) Reference Rate.
- On March 5, 2021, the FCA said all USD LIBOR settings will either cease publication or no longer be representative after June 30, 2023.
- The Citi ( C ) securities based on US LIBOR will use either of one-, three-, or six-month tenor corresponding to the relevant USD LIBOR rate as administered by CME Group Benchmark Administration plus a tenor spread adjustment, the company said.
- In January, Fannie Mae ( OTCQB:FNMA ) and Freddie Mac ( OTCQB:FMCC ) said their legacy USD LIBOR loans and securities will transition to the SOFR-indexed benchmark.
For further details see:
Citigroup to transition USD LIBOR securities to SOFR reference rate