US regionals load up on cheap receive-fix term SOFR swaps
Major dealers are welcoming basis-risk-offset trades with “open arms”, say hedge advisers
Smaller US banks are taking advantage of a pricing imbalance in the dollar-denominated swap market to help protect themselves against the risk of rates falling from their current lofty heights.
Regional and community banks are loading up on receive-fix interest rate swaps linked to the term version of the US secured overnight financing rate (SOFR), hedge advisers say. This allows them to lock in
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