Benchmark bother: Europe frets over new risk-free rate

Unsecured fixing from ECB faces off against two repo-based rates, as 2020 benchmark deadline looms large

In the US, they have SOFR. In the UK, they have Sonia. In Switzerland, they have Saron.

In the eurozone, they haven’t yet decided.

Less than two years before European banks must switch to a new benchmark for pricing billions of euros of interbank loans and derivatives, the industry is still pondering which risk-free rate to choose as the official fixing.

The European Central Bank has whittled down prospective candidates to a shortlist of three. The favourite among many is the rate devised by

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