SOFR switch saved GSEs over $300m, study finds
Research suggests borrowers are benefitting from a systematic ‘SOFR discount’
The transition to the secured overnight financing rate, or SOFR, triggered concerns that some big floating rate issuers, such as the Federal Home Loan Banks (FHLBs), would see a potential increase in debt costs. But new research shows the opposite, with US government sponsored enterprises (GSEs) estimated to have saved more than $300 million in interest expenses from an early transition to the
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