
US swap market may become multi-rate world, say dealers
If alternative rates gain traction in cash market, traders say users will want hedges linked to them

Dealers believe the US interest rate swap market will move into a multi-benchmark world, with instruments being pegged not only to regulator-approved risk-free rates, but also term and credit-sensitive rates.
The US Alternative Reference Rates Committee has recommended the use of a backward-looking, compounded version of the secured overnight financing rate (SOFR) as the replacement for US dollar Libor in the swap market. But with some cash products expected to be tied to either term versions
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