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Oct 03, 2019

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J.P. Morgan Executes First Bilateral SOFR Loan

J.P. Morgan executed its first bilateral SOFR-linked loan with leading Brazilian bank Itau BBA.

October 4, 2019

The loan’s interest rate referenced the Secured Overnight Financing Rate (SOFR), a new USD-based benchmark that is published by the Federal Reserve Bank of New York and is based on transaction data from the repo market. This new loan transaction is a concrete step towards developing a SOFR loan market – a key component to foster the growth and viability of SOFR as a new financial market benchmark.

J.P. Morgan is providing leadership by actively issuing SOFR-linked debt, making markets in SOFR instruments, educating clients and mobilizing hundreds of staff across the globe to prepare for this landmark transition to alternative reference rates.

Please visit our Leaving LIBOR page for more information on the transition away from LIBOR.

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