The Libor replacement stakes: runners and riders
Credit-sensitive rates Ameribor and BSBY nose ahead of Ice, Markit and AXI; regulators keep watchful eye
And they’re off. The starting gates have opened in the race to replace Libor with a credit-sensitive alternative to the secured overnight financing rate, or SOFR – regulators’ preferred successor for US markets.
Five vendors are jockeying to be the go-to provider of a new bank funding benchmark, which could be used as an all-in rate or layered over SOFR to make the risk-free rate (RFR) more palatable for lenders. The race is not necessarily winner-takes-all, though. Some punters believe the
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