Pimco criticises LCH over SOFR plan
Senior official calls on CCP to follow CME and use SOFR for margin interest and discounting immediately
A senior Pimco official has criticised LCH’s decision to stick with Fed funds as the discount and margin interest rate for secured overnight financing rate (SOFR) swaps in the short term, claiming it will create a “bastard contract” that will generate more problems for legacy products.
Speaking at a Market Risk Advisory Committee meeting at the Commodity Futures Trading Commission on June 12
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