The ARRC Securitizations Working Group published a white paper that outlines a model for using SOFR in advance for ABS products. The Addendum to the Options for Using SOFR in new ABS, MBS, and CMBS Products describes how SOFR in arrears could be incorporated in U.S. issuance of ABS. For the purposes of the white paper and addendum, they refer to ABS products as collectively representing non-CLO ABS, mortgage-backed securities, and commercial mortgage-backed securities products. The white paper was issued on March 29, 2021, while the Addendum was issued on November 10, 2021.

The ARRC released a supplemental update to its recommended contractual fallback language for USD LIBOR securitizations. The supplemental update amends the definition of a Benchmark Trigger Event within the recommended fallback language to acknowledge its occurrence as a result of the March 2021 IBA/FCA announcements.

The ARRC published a white paper that outlines a model for using SOFR, the ARRC's preferred alternative to USD LIBOR, in ABS products. For the purposes of this paper, it refers to ABS products as collectively representing non-CLO ABS, mortgage-backed securities, and commercial mortgage-backed securities products.

The matrix identifies considerations relevant to using SOFR in new floating rate notes (FRNs) and the Appendix includes SOFR FRN term sheets and fallback language. The Comparison Chart highlights key differences of structures used in the market. These documents were developed to help market participants as they consider issuing or investing in SOFR-based FRNs and may be updated or supplemented periodically. The Matrix and Comparison Chart were issued on August 1, 2019, while the Appendix was issued on November 21, 2019.

The ARRC’s Floating Rate Notes Working Group released a statement to provide market participants with information about how the New York Fed’s published SOFR Index may be referenced in floating rate notes. The statement includes structuring considerations as well as a sample term sheet for floating rate notes referencing the SOFR Index.

The ARRC released final recommended contractual fallback language for USD LIBOR denominated securitizations. These provisions are for market participants’ voluntary use in new contracts that reference LIBOR and were developed with the goal of reducing the risk of serious market disruption in the event that LIBOR is no longer usable. They were developed following an associated consultation and webcast (comments received).

• Consultation (Released for comment on December 7, 2018)
• Webcast about consultation
• Comments Received (Comment Period Ended on February 5, 2019)
• Final Recommended Language (April 25, 2019)

The ARRC today released an Appendix to the SOFR Floating Rate Notes Conventions Matrix. The Matrix, which was issued in August 2019, identifies considerations relevant to using SOFR in new FRNs.

The ARRC released a SOFR FRNs Comparison Chart, which accompanies the SOFR Floating Rate Notes Conventions Matrix. The Comparison Chart outlines conventions already being used in the market. Both documents were developed to help market participants as they consider issuing or investing in a SOFR-based FRN and may be updated or supplemented periodically.

The ARRC released final recommended contractual fallback language for USD LIBOR denominated floating rate notes. These provisions are for market participants’ voluntary use in new contracts that reference LIBOR and were developed with the goal of reducing the risk of serious market disruption in the event that LIBOR is no longer usable. They were developed following an associated consultation and webcast (comments received).

• Consultation (Released for comment on September 24, 2018)
• Webcast about consultation
• Comments Received (Comment Period Ended on November 26, 2018)
• Final Recommended Language (April 25, 2019)