BANK OF AMERICA became the first bank to price a floating-rate note off of the Bloomberg Short-Term Bank Yield Index last week, a move that supports alternatives to the secured overnight financing rate. With regulators phasing out new issuance referencing the scandal-plagued Libor rate by year-end, much of the market has been focused on a transition to SOFR, which measures the cost of borrowing cash overnight in the repo market collateralised by Treasury securities, according to the Federal Reserve's definition.
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