SOFR alternatives remain on track despite regulatory warnings
Pointed criticism from FSOC has done little to dampen interest in credit-sensitive rates
Banks and index providers still plan to offer a menu of Libor replacements for use in loans and derivatives contracts despite recent regulatory criticism of credit-sensitive alternatives to the secured overnight financing rate, or SOFR.
Senior US supervisors railed against the use of credit-sensitive benchmarks in derivatives contracts at a June 11 meeting of the Financial Stability Oversight Council. Securities and Exchange Commission chair Gary Gensler was especially scathing about Bloomberg
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