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 ...
at the potential income that a property could bring, instead of the income that an investor is making right now.6 month SOFR DSCRloans are a variation on this financing option where the loan is packaged as an adjustable rate mortgage with an interest rate that changes based on the SOFR ...
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...
“It’s simply a case of more people becoming comfortable with SOFR as a benchmark. Almost all of our customers – well over 90% – are now trading in a SOFR world,” said Mark Rogerson, head of interest rate products for EMEA at CME Group. “Liquidity is now equivalent and in some...
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 deposit
1. Japan has 15 months of foreign exchange reserves to pay for their now energy-driven current account deficit. That means Japan has a lot more USTs they can sell, putting more upward pressure on UST yields and downward pressure on the highly interest rate sensitive US ...
“With continued economic and interest rate policy uncertainties, SOFR futures and options are proving to be extremely valuable risk management and hedging tools,” saidAgha Mirza, CME Group Global Head of Rates and OTC Products. “The market for SOFR futures and options is deeply liquid and full...
but that is not very helpful in making decisions as to longer term transactions in higher rate environments. In addition, there are legal issues lurking around the end of LIBOR that are starting to come into focus. All of this leaves us asking, exactly where are we now in our long good-...