Pick a rate: pitfalls and prizes in the post-Libor world
SOFR set to win big in replacing Libor, but trillions could scatter across alternatives
It’s pick-a-rate time in the US market. Libor’s impending demise makes way for a bewildering array of alternatives – some appealing, some appalling, depending on your perspective. And as in any arcade game where the treasure remains just out of reach, in the post-Libor US, the odds are also stacked.
The Federal Reserve-backed secured overnight financing rate, or SOFR, is most likely to succeed – in part because regulators are so keen to encourage its use – and will emerge as the primary
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