Results 1 to 7 of 7
  1. #1
    Frumious Bandersnatch RandomGuy's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jun 2005
    Post Count
    46,662
    LIBOR has had a couple of scandals about price fixing. Be interesting to see if this sticks.


    -------------------------------------------------------
    Alexandra Harris
    Mon, July 26, 2021, 4:32 PM
    (Bloomberg) -- U.S. regulators are wagering a major shakeup of the mul rillion-dollar interest-rate swaps market is just what’s needed to wean Wall Street off the London interbank offered rate for good.

    In a key development in the shift from the discredited benchmark, beginning Monday, swaps desks will switch from Libor to the Secured Overnight Financing Rate when entering into most interdealer trades, effectively changing how they hedge their interest-rate risk.

    The move is designed to ignite a flurry of activity in derivatives tied to SOFR, ensuring enough liquidity to help establish a forward-looking term structure, a critical holdup that’s prevented various cash markets from embracing the rate. It’s the first step in a renewed effort to push firms toward the benchmark ahead of the year-end deadline to ditch Libor for new transactions, and comes amid increasing compe ion from a slew of new reference-rate providers seeking to carve out their own slice of the post-Libor landscape.

    This “is a huge deal,” said Thomas Pluta, global head of linear rates trading at JPMorgan Chase & Co. “We’ve been surprised at how slow the uptake in SOFR derivatives has been to this point, so this is exactly what the market needs.”

    The shift will see SOFR replace Libor as the floating leg on all linear swaps, swap spreads and curve trades in the interdealer market, where financial ins utions like JPMorgan and Goldman Sachs Group Inc. hedge the interest-rate exposure they incur from transactions with clients.

    The best-practice recommendation from the Commodity Futures Trading Commission’s market risk advisory committee doesn’t affect Libor-SOFR basis trades, meaning firms can still hedge their risk via Libor if they choose.

    Still, it will create more volume in SOFR derivatives by definition, said Bart Sokol, a managing director for U.S. interest-rate swap trading at Barclays Plc. That should narrow bid-ask spreads, encourage banks to migrate end users over to SOFR, and ultimately facilitate the liquidity the Federal Reserve-backed Alternative Reference Rates Committee has said it wants to see prior to endorsing a term rate.

    ...

    https://finance.yahoo.com/news/libor...100000741.html

  2. #2
    6X ST MVP Spurtacular's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jul 2015
    Post Count
    81,062
    Pity post.

  3. #3
    Frumious Bandersnatch RandomGuy's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jun 2005
    Post Count
    46,662

  4. #4
    6X ST MVP Spurtacular's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jul 2015
    Post Count
    81,062
    Didn't you take a pledge to STFU or something?

  5. #5
    Frumious Bandersnatch RandomGuy's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jun 2005
    Post Count
    46,662
    Didn't you take a pledge to STFU or something?
    Not really. I am never going to click on 99% of most of your pathetic spam threads.

    I reserve the right to make fun of your dumb ass anytime it amuses me, you ing idiot.

  6. #6
    Frumious Bandersnatch RandomGuy's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jun 2005
    Post Count
    46,662
    Didn't you take a pledge to STFU or something?
    Not really. I am never going to click on 99% of most of your pathetic spam threads.

    I reserve the right to make fun of your dumb ass anytime it amuses me, you ing idiot.

  7. #7
    6X ST MVP Spurtacular's Avatar
    My Team
    San Antonio Spurs
    Join Date
    Jul 2015
    Post Count
    81,062
    Not really. I am never going to click on 99% of most of your pathetic spam threads.

    I reserve the right to make fun of your dumb ass anytime it amuses me, you ing idiot.
    So, you're saying you need a lot of safe space. K

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •