4/22/2019 | By Nareit Staff
Tom Wilkin, partner and U.S. REIT leader at PwC, participated in a video interview at Nareit’s REITwise: 2019 Law, Accounting & Finance Conference in San Antonio.
Wilkin discussed the planned transition away from the London Interbank Offered Rate (LIBOR) in favor of the Secured Overnight Financing Rate (SOFR) that will occur by the end of 2021. LIBOR is currently the predominant interest rate benchmark for the dollar and other global currencies. He noted that globally, about $350 trillion in contracts are tied to LIBOR in some way.
“A lot of things actually have a link to LIBOR. That creates a lot of tentacles from a practical, economic perspective as well as a process and controls perspective,” he said.
Wilkin also commented on the potential impact of the new credit losses standard on equity REITs and mREITs.