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SOFR Term Rate Decision Signals Tighter Regulation

SOFR Term Rate Decision Signals Tighter Regulation

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The Alternative Reference Rates Committee (ARRC) reversed its decision to wait for greater liquidity approving immediate use of the term SOFR index for bank loan pricing. This sudden rush to approve term SOFR was part of a broader move by bank regulators to tighten control of short-term rate-setting of commercial banks.

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