SOFR to become main US dollar Libor replacement despite alternatives, experts say
5 min read The secured overnight financing rate will become the main replacement for Libor in US financial markets, according to a number of experts speaking at the International Swaps and Derivatives Association’s annual general meeting, despite the emergence of some alternative lending rates. The development of the SOFR market in the US has been slow, with interest-rate swaps tied to the new reference rate making up less than 2% of US trading volumes, according to data from IHS Markit, compared to over half of sterling swap trading volumes being linked to the UK's sterling overnight index...
Source: ifre.com