Former United States Federal Reserve Chair and current Treasurer Janet Yellen commented on SOFR Academy, “This is an important project and much needed.” It is a matter of how LIBOR will end rather than if it will end. Education is vital to ensure an orderly and broad-based transition.
This transition to new alternative rates will create benefits for market participants. At SOFR Academy, we view LIBOR transition as a strategic opportunity to strengthen client relationships, streamline processes and future proof an organizations products and services.
Transformational Change. Transforming Leaders.
World-class interactive training and development programs for a new financial ecosystem. Organizations should leverage LIBOR transition as an opportunity to drive firm-wide objectives. Our content is developed by LIBOR transition experts and is backed by leading Academics.
Offer new Alternative Rate linked products to expand client service offering, satisfy client demand and protect wallet share. Protect existing product revenues when fallback language is triggered and LIBOR is no longer published.
Organizations should use LIBOR transition as an opportunity to strengthen client and customer relationships. Organizations should empower client facing staff with information to educate their clients to support an orderly market wide transition.
SOFR Academy was founded by LIBOR transition specialists involved in National Risk-Free-Rate working groups. We possess both a theoretic and practical understanding of interest rate products across both cash and derivatives gained over decades of Financial Services experience.
Directors of SOFR Academy maintain relationships with the LIBOR transition community. This includes regular conversations with LIBOR transition program leads at Financial Institutions, Regulators, industry and trade associations and market intermediaries.
SOFR Academy reserves the right to award the SOFR Academy CertificationTM (SAC) upon successful completion of certain courses and requirements. Course content is updated in concert with industry developments. The SAC is the leading industry certification for USD LIBOR to SOFR transition.
Unique, world class quality, self paced, online programs aimed at building leaders in LIBOR transition. Our flexible learning increases employee engagement and optimizes learning outcomes.
Tailored Executive Education sessions to equip leaders within an organization with the information required around benchmark reform. These sessions are generally aimed at Senior Executives.
Access to LIBOR transition Subject Matter Experts (SME) enables customized programs and solutions designed to address an organization’s unique business challenges and education requirements.
Seamless multi-device learning experience deployable across platforms. SOFR Academy is an Amazon Web Services Educate member institution providing access to a gateway of next generation technology and resources.
Targeted training modules, customizable content with flexible focus, self assessments, content updated dynamically in line with industry developments, access to insights and publications.
Industry recognized SOFR Academy Certification (SAC) upon successful completion of certain required modules. Leading certification for USD Benchmark Reform in the United States.
SOFR Academy courses are self paced, dynamic, and available anywhere and anytime via our Learning Management Software delivery channels.
“Great compilation of key quantitative features of risk free rates, simplified examples of multiple payment conventions, unique demonstration of hedging relations between RFR based FRNs, Swaps and Futures. In nutshell, it provides a must have understanding for everyone working on the interest rate benchmarks reforms across the globe”
“We have about $300 Billion of funds under management across a range of asset classes. We invest in LIBOR based instruments as part of our fixed income exposure and also use them for hedging. It’s clear that near risk-free rates are the future of the financial system. SOFR Academy’s courses helped build up the knowledge and skills I needed.”
“The information about SOFR and SOFR methodologies was clear and well presented. The examples and explanations were also very helpful. The documents for loans with a compounded SOFR rate that we have seen to date include the compounding formula, so we need to be more familiar with the math. This course was a great start.”
“I am the key person for driving the LIBOR Transition project for our bank. After completing the course I am more confident to apply the knowledge in decision making to build the right solutions for our customers. This course is very well designed and every topic is explained in the simplistic way possible which makes it easier to grasp the concepts quickly. I would highly recommend this course for people involved in LIBOR Transition OR affected by LIBOR Transition.”
“I have found the courses from SOFR academy to be very helpful in understanding the basics of Libor transition to SOFR. Also the course provides information on the SOFR related calculations that an analyst would need to know to work in this exciting space. Considering the plethora of opportunities that this new regulatory initiative is going to provide, I would highly recommend the courses from SOFR academy”.
Ready to master SOFR skills with in-depth learning?
SOFR Academy is the premier organization committed to advancing the professional knowledge, skills and experience of those dedicated to the successful transition from USD LIBOR based products to new alternative rates. SOFR Academy achieves its mission through educating professionals in private and government organizations about LIBOR transition practices and certifying the achievements of our members.
As LIBOR transition impacts financial and non-financial institutions and societies as a whole, the challenge and the need to develop experts in risk free rates and alternative rate products intensifies. The SOFR Academy CertificationTM (SAC) credential identifies those who earn it as possessing specialized LIBOR transition knowledge. Financial professionals who earn the SAC designation position themselves to be leaders in the industry and valuable assets to their organizations.
Our mission is to empower people, organizations and communities to succeed through world class learning – Anywhere, anytime.
We place our clients interest ahead of our own and adhere to high ethical standards. We place a very high value on our integrity which builds trust with our clients. We are committed to delivering excellence in everything we do.
We believe in empowering clients by equipping them with LIBOR transition capabilities. We believe that we will be successful if our clients are successful. We create knowledge leaders in LIBOR transition for our clients.
We have established a reputation as leaders at the forefront of LIBOR transition through industry engagement and National Risk-Free-Rate Working Group participation – we are committed to maintaining this reputation.
Transition Plan Quality Assurance
SME Retainer Support
The SEC has issued a Risk Alert identifying registrant preparedness for the transition away from LIBOR as an examination program priority for FY 2020
The FDIC’s Supervisory Insights focuses on LIBOR transition and states that LIBOR is also important to smaller community banks and savings institutions.
The CFTC has set up a subcommittee to focus on LIBOR transition and has delivered numerous speeches on LIBOR transition.
The Federal Reserve has communicated consistently that they “will expect to see an appropriate level of preparedness at banks” they supervise.
The US Treasury Borrowing Advisory Committee discussed the importance of SOFR linked debt issuance and agreed to investigate this market further.
The FHFA has instructed the GSE banks that it supervises to accelerate their transitioning away from LIBOR towards alternative reference rates.
The OCC has communications that preparation for the potential phase-out of the LIBOR will be part of its 2020 Bank Supervision Operating Plan.
The FASB has proposed guidance to avoid unintended income statement volatility during the transition away from LIBOR to new reference rates.
The USD plays an important role as the worlds global funding currency. Sovereigns and central banks maintain more USD than other other currency and must ensure that they can fulfill their statuary mandate in a financial system based on alternative reference rates.
Banks must urgently launch new products linked to alternative refence rates in additional to transitioning their legacy portfolio. LIBOR is deeply embedded within many institutional products as well as and consumer products.
E-brokers will need to transition products like margin loans and will also face significant challenges in valuing positions off of a new SOFR based yield curve.
Interest rate hedges are a key area where LIBOR is utilized by insurers. A new SOFR based yield curve will also have valuation and technology implications.
Corporate treasurers and enterprise risk managers must ensure their organizations are prepared. Taking proactive action to transition products like credit agreements, terms loans, floating rate notes, intercompany transactions and associated hedges is critical.
LIBOR is deeply embedded within many buy side organizations. They face particular challenges from this transition, including their diversity of asset classes, dependence on third parties, and complex investor base.
The impact on Pension funds will be broad ranging. From portfolio re-balancing, trade settlement, and accounting to infrastructure and technology enhancements.
Credit Unions need to demonstrate to their deposit holders and regulators that they are prepared for the transition particularly in relation to consumer products in which they transact.
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