First Ameribor bond bolsters SOFR alternative

Signature Bank sets sub debt milestone for aspiring Libor replacement; swaps expected to follow

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Ameribor has taken an early lead in the race to establish a credit-sensitive alternative to US dollar Libor, after it was used in a bond issue earlier this month. The US market already has an officially endorsed successor to Libor – the secured overnight financing rate (SOFR) – but regional banks have been pushing for a benchmark that would rise and fall in line with their funding costs.

New York-based lender Signature Bank priced a $375 million Ameribor bond on October 6. The notes pay a fixed

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