Key Advisor - Spring 2021
At KeyBank, we’re committed to keeping you up to date on developments that impact your auto dealership. This issue of our newsletter focuses on two important financing subjects for dealers today.
Key Takeaways
- The financial services industry is transitioning from LIBOR to a new benchmark rate called SOFR. Our lead article explains how we’re working with each client to identify what the change will mean for them.
- Longer-term interest rates are rising, and that increases risk for dealers who finance long-term assets with variable-rate loans. Our second article describes the role that interest rate swaps can play in protecting a dealership’s profitability and bringing more certainty to cash flows.