policy. For instance, one trader agrees to pay fixed interest in the vanilla swap, and the other bears a floating interest based on the overnight financing rate SOFR. Yet, the interest rate can be lower or higher than the SOFR based on the traders’ interest rate conditions and credit ...
Why are we looking at Fed Funds risk AGAIN then? Because Fed Funds counts as a “legacy rate” in theRFR Adoption Indicator. Increases in Fed Funds risk therefore increases the “non-RFR” volumes that we monitor – and is also potentially taking volume away from SOFR, so is certainly rel...
But here's the important point - should the interest rate swap (IRS) curve that evolves be one that has a term SOFR or SOFR in arrears payment on the floating leg? The dominant ISR curve right now is one referencing SOFR in arrears on the floating leg. The dominant IRS curve right ...
Fast forward, and today LIBOR has a critical role in global markets: It is now widely used as a reference rate for financial contracts and as a benchmark to gauge funding costs and investment returns for a broad range of financial products, including adjustable-rate mortgages, credit cards, ...
CHARLOTTE, NC - Bank of America Corporation (“BAC”) (NYSE: BAC), BofA Finance LLC (“BofA Finance”) and certain other BAC-affiliated issuers have issued and outstanding certain floating or fixed-to-floating rate debt securities, preferred stock represented by...