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Liquid Debt Markets – LIBOR And The Liquidity Myth

Liquid Debt Markets - LIBOR And The Liquidity Myth

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Regulators decided several years ago to replace LIBOR with an overnight rate. Since then they have promoted SOFR (the secured overnight financing rate) to replace it. SOFR is a poor replacement. It is not forward-looking and does not reflect the expected cost of market credit risk. However, there is nothing better available.

...read full article on Seeking Alpha

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