term sofr vs daily simple sofr term sofr vs daily simple sofr

Term SOFR, the forward-looking term rate based on the Secured Overnight Financing Rate (SOFR), has become an established benchmark rate for new US Dollar lending in the US syndicated loan market. HV xM> B8&&1FB !1MD"H$"BP)}J$}bYijvoJ=- ACxL#Ffh"R3Uo@IM||]f!bcj h@B})+j5B"#P7w@e?<1bJUh~+#]V>o$'MLNONNv2{$S4Yt1 !dYI?hu]/r jdZ5kcS^}v ;4n;9W-Zjg^:zuk=zo. We are connecting emerging solutions with funding in three areashealth, household financial stability, and climateto improve life for underserved communities. Alternatively, if the Borrower has no issues with managing the payment requirements of Daily Simple SOFR, then they may prefer this rate today. The NY Fed publishes SOFR Averages here and 30D SOFR can be found on Bloomberg under ticker . Many financial contracts have used overnight rates, but typically use an. Do you have a Freedom of Information request? In the DVP repo market, asset managers and other investors (e.g., REITs) borrow specific securities from broker-dealers and securities lenders on a bilateral or cleared basis. Chathams update on the LIBOR transition, summarizing recent news, upcoming deadlines, and available resources to help you stay current as the market transitions away from LIBOR. This ongoing Liberty Street Economics series analyzes disparities in economic and policy outcomes by race, gender, age, region, income, and other factors. SOFR is more technically Overnight SOFR (today, 0.05%) Term SOFR aka CME Term SOFR is a forward-looking rate based on SOFR futures (today, 0.27%) Overnight SOFR is a retroactive rate, which means it tends to move after a Fed hike. BSBY should not have the mismatch risk i.e., the Floating Rate in the Borrowers swap and the dealer-market swap can be the exact same. ), it is an overnight, fully secured rate. Unlike LIBOR, SOFR is a secured overnight rate, not a forward looking term rate. Membership in the LSTA offers numerous benefits and opportunities. Yes. Is that delta enough to make a difference to a Borrower? The transition away from LIBOR benchmarks in financial markets, begun in 2017, accelerated in 2022, especially in the US. This is the compounded average of SOFR from the previous 30, 90, or 180 days. One interesting fact we came across is that the difference between a simple and compounded average of SOFR over the previous two decades would have only ranged from 0-10 bps. Additional Term Loans means any term loan added pursuant to Section 2.22, 2.23 or 9.02 (c) (i). to international institutions. For more information on the SOFRs publication schedule and methodology, see Additional Information about Reference Rates Administered by the New York Fed. This page shows graphs and a table with information about the development of the SOFR interest rates in 2022. Please reach out to the Chatham team if you have questions around the USD LIBOR transition or how the use of SOFR in your loans and derivatives could impact your interest rate exposure. Home / News & Resources / News / Term SOFR Conventions: (Almost) Just Like LIBOR. endstream endobj startxref White Collar, Regulatory Defense, and Investigations, Jay Pow continues to make the Feds printers go brrrrr, Data Points: Privacy & Data Security Blog, MVA White Collar Defense, Investigations, and Regulatory Advice Blog. In order to provide the counterparties sufficient time to pay interest at the end of the period, several potential conventions are feasible (and are illustrated on p. 12 of . Our economists engage in scholarly research and policy-oriented analysis on a wide range of important issues. SOFR is typically published on US business days, and CME Term SOFR aligns with that calendar. The NY Fed publishes SOFR Index alongside SOFR Averages here and the index can be found on Bloomberg under ticker . SOFR. The most actively traded USD LIBOR tenor is three months, and less than $1 billion of transactions typically support the calculation of this rate each business day. New York Fed SOFR Data. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the markets direction. I am assuming that most Borrowers will be less focused on the nature of the floating rate, and more focused on the cost of any hedge. 751 0 obj <> endobj Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot. The above issue is really much broader. Background: The ARRCs Daily Simple SOFR and Daily Compounded SOFR in Arrears Conventions (published in July 2020) were complicated because these rates are not known in advance of the interest period and therefore many conventions differed from LIBOR conventions. Bilateral Treasury repo transactions cleared through FICCs DVP Service (Fixed Income Clearing Corporations Delivery vs. Payment Service). File; Blackline-Form-of-Credit-Agreement-Revolving-Credit-Facility-Term-SOFR-Feb-27-2023-vs-July-8-2022-version.pdf: It is derived and implied from futures trading in SOFR, which is used as a measure reflecting the cost of overnight borrowing in the U.S. Treasury repo market. Since SOFR Average is compounded based on the preceding SOFR prints for the respective term, its often referred to as compounded SOFR set in advance and is the index currently being used on Agency financings. 1-month LIBOR vs 1-month compounded SOFR. 3 LIBOR and Term SOFR) set at the beginning of the interest period. This is a simple interest calculation. Introducing the New York Innovation Center: Delivering a central bank innovation execution. hb```&f AXXc #i `Qkp``# U(-8]q_CMq%2f)sHXkUCf *NKse|`Pb1aCD]+:9U^^*U&8R4{:i^u"=/JdO;bmbZUz]UzAyZM]w y7%s=sMbXW|#a};5:0g^gN3;{M,y:i&I&X/c]tc2wP'c^'M,z:iTu6M}%n6```pb`:Ph` , R^PL1*mM)WkRHIv4j$LDPvFXJ3;/0\al[$0)({IiLUF%Uw7BwW3H2pX@]vBT1: !p Daily Simple SOFR Rate means for any day, a rate per annum equal to (a) the greater of (i) Adjusted Daily Simple SOFR for such day, and (ii) the Floor, plus (b) the Applicable Margin for such day, in each case changing when and as Daily Simple SOFR or the Applicable Margin changes. Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video. Permit movement from daily SOFR to term SOFR - It is possible that term SOFR (the first level of the waterfall) will not exist at the time a SOFR-priced loan agreement is entered into, and the loans will thus be priced at a rate based on daily SOFR (the second level of the waterfall). March 2, 2023 - The FT recently commented that, as LIBOR deadline looms, leveraged borrowers and lenders are scrapping over the fine print as the, The SECs proposed Safeguarding Rule includes sweeping and transformative revisions to the current Custody Rule. The 1-month USD LIBOR forward curve represents market-implied future settings for 1-month USD LIBOR, an index rate used in many legacy floating-rate . urrently, SONIA forward looking term rates are available for some tenors and the ARR recommends use of ME Group's forward-looking SOFR Term Rates for 1-, 3- and 6-month tenors. Below, we focus on Term SOFR and flag where the conventions are similar to LIBOR, and where they may differ slightly. The NY Fed calculates and publishes SOFR each morning using the data from the preceding business day and its the basis for all other SOFR calculation methodologies. Daily Volume $500 Million (3-month LIBOR) (estimated) Nearly $1 trillion (high correlation to T-Bills) SOFR measures of the cost of borrowing cash overnight collateralized by Treasury securities. The hedge/loan accrues interest daily based on SOFR and the total amount due is known at the end of the period. This ongoing Liberty Street Economics series analyzes disparities in economic and policy outcomes by race, gender, age, region, income, and other factors. 2. Home / Content / Current Blackline Documents / Blackline - Form of Credit Agreement Revolving Credit Facility Term SOFR (Feb 27 2023) This document is blacklined against the document dated July 8, 2022. Compounded SOFR in advance and Term SOFR tend to be the two most commonly used indices. The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities. The risk-free nature of SOFR brings challenges that have caused many banks to advocate for credit-sensitive benchmark rates developed in the private market. (Term SOFR being step 1 in the replacement rate waterfall) upon a certain number of publicly available USD-denominated syndicated credit agreements being originated with, or switching over to, a SOFR-based rate. Among other differences from LIBOR, SOFR (i) is considered a "'near risk-free rate'" (i.e., it lacks a credit risk component) because it is secured by U.S. Treasuries; and (ii) at least until recently lacked a forward-looking component such as LIBOR's one-week and one-, two-, three-, six- and twelve-month tenors. However, if SOFR is not published on a US business day, the previous days Term SOFR rate may be used up to three days. These spread adjustments were fixed on March 5, 2021 at 11 bps for 1M contracts and 26 bps for 3M contracts. Below weve included some helpful links if youd like to dig in more. If you click on the link in the table above, you can access a page with the current rates. *I have read and accept the terms of Chathams Privacy Policy. From an administrative standpoint, the main difference will be the reference to SOFR instead of USD LIBOR and the application of the Spread Adjustment to obtain a SOFR equivalent of an existing LIBOR margin. This is the volume weighted median derived from the borrowing rates of actual repo transactions, or the cost of borrowing cash overnight collateralized by Treasury securities. The ARR does not support the use of the SOFR Term Rate for We should get more clarity on this point, and I would expect/hope it tracks those buyside parties exempt from the U.S. swap margin requirements. I have been on various industry calls and the view: There is no regulatory risk with BSBY i.e., no bank or other regulator is going to make BSBY illegal or otherwise go away, in an effort to promote SOFR. Think Prime or Fed Funds. In contrast to the different term LIBORs (i.e., one-month LIBOR, three-month LIBOR, etc. In lieu of the rate being determined two business days prior to the beginning of the interest period, it will be known two business days prior to the end of the period. The Exposure Drafts are single currency facility agreements based on the compounded average of the RFR calculated on an in arrear basis over an observation period starting before the start of, and ending before the end of, an interest period. Average SOFR, Simple Daily SOFR and Compounded SOFR The monthly Empire State Manufacturing Survey tracks the sentiment of New York State manufacturing executives regarding business conditions. Thanks For Clearing That UpBut what about Compounded SOFR (aka NY Fed) or simple average SOFR you ask? GBP LIBOR will transition to SONIA, likely by the end of 2021. Timing Conventions: Like LIBOR, Term SOFR is recommended to have a two-day lookback (e.g., the rate published two days before the start of the interest period would be selected and locked for the entirety of the interest period) and borrowers are recommended to provide a notice of borrowing three days prior to the borrowing date. Yes: Credit Sensitive Component. This week we cover SOFR Switch Accelerates; You've Got Custody! Since ISDA SOFR is meant to serve as a replacement for LIBOR, the difference between the two rates is minimal. 777 0 obj <>stream endstream endobj 227 0 obj <. Alternatively, they can all be found on the CMEs website here. Read more about Agency SOFR caps here. The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support Keeping Them ApartOne challenge with the transition from LIBOR to alternative rates has been that SOFR is used as a catchall that can mean one of several things. For more information, contact mcoffey@lsta.org, tvirmani@lsta.org or ehefferan@lsta.org. As I have mentioned in the past, I would expect the rate most commonly used by Lenders will be the floating rate that can be swapped out for the lowest fixed rate. 2621 0 obj <>/Filter/FlateDecode/ID[<71CD6515EA1070449EA276D512E2A5FA>]/Index[2612 15]/Info 2611 0 R/Length 63/Prev 737784/Root 2613 0 R/Size 2627/Type/XRef/W[1 2 1]>>stream 248 0 obj <>stream The Term SOFR forward curves represent market-implied future settings for 1-month and 3-month Term SOFR, index rates commonly used in floating rate commercial real estate and corporate financings. About 40% of total SOFR risk is traded in . Overnight rate, term not available. H\j@}l/qgZ@} dKt?a6tblt.%6vB6/\5lNyw=vCUyWwjfkl-vn>[.NF7sk>^|jiw:+9eP7pkt-3r[*P$`O`!X In the tri-party repo market, a clearing bank sits between broker/dealers that borrow from cash investors (e.g., money market funds, mutual funds, et al.). Daily Simple SOFR means, for any day, SOFR, with the conventions for this rate (which may include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for business loans; provided, that if the And the LSTAs Elliot Ganz explains how the revisions are, The panelists will discuss sustainability linked loans (SLLs) and the growing importance that SLLs play in advancing ESG considerations in the loan market. Lenders may want to start to compare how BSBY vs Adjusted Term SOFR Rate compare. gMU:xfo>3;9x?eX` 'vs In short: BSBY will not have mismatch risk. For right now, maybe it is best to not put all your eggs into one basket. Given the loan market's preference for a forward-looking term rate, Coffey suggested that the choice for business loans may be Term SOFR or one of the newly launched credit sensitive rates featuring a forward-looking term structure, such as the Bloomberg Short Term Bank Yield Index (BSBY). And the LSTAs Elliot Ganz explains how the revisions are, The panelists will discuss sustainability linked loans (SLLs) and the growing importance that SLLs play in advancing ESG considerations in the loan market. For more information on the production of the SOFR Averages and Indexincluding the calculation methodology, treatment of non-business days, and value datesplease read the . hbbd```b``@$XD2} 9D Not only does it more closely match their cost of funds, but (1) they will want a 1-for-1 match and (2) they likely will not have systems in-place to confirm any compounded in-arrears calculation or otherwise just prefer to not have cash flow management based on this sort of floating rate calculation. The rate is published by the New York Federal Reserve to serve as a rate upon which other debt transactions can . endstream endobj 2613 0 obj <>/Metadata 165 0 R/Outlines 200 0 R/PageLayout/SinglePage/Pages 2602 0 R/StructTreeRoot 287 0 R/Type/Catalog>> endobj 2614 0 obj <>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 2615 0 obj <>stream Simple average SOFR is calculated in arrears meaning it reflects the Overnight SOFR resets during the actual accrual period. The ARRCs primary stated criteria in choosing a replacement rate for USD LIBOR included liquidity and robustness of underlying markets, as well as not restricting the Feds future monetary policy choices. Term SOFR could involve a credit adjustment spread being added to the benchmark rate (in particular for legacy loans switching to this methodology). Check out our white paper here for more on how the transition will change your rate. Need to file a report with the New York Fed? New or existing LIBOR loans. 3 Heres an example comparing SOFR Index and SOFR Average: [(1.04136820% / 1.04085026%) 1] * (360/30) = 0.59713% which matches the 4/1/2020 30D SOFR Average print. On the swaps, if BSBY and Adjusted Term SOFR are supposed to roughly track each other (because both are an approximation of LIBOR), maybe a swap desk gets comfortable with not caring if the Borrower swap is Term SOFR or BSBY for pricing purposes, because any effort to hedge/price that risk will depend on the Fixed Rate in the Dealer-to-Dealer SOFR Compounding In-Arrears market? Need more information? Term SOFR, USD LIBOR, and Treasury Forward Curves The Secured Overnight Financing Rate (SOFR) forward curve represents the implied forward rate based on SOFR futures contracts. 769 0 obj <>/Filter/FlateDecode/ID[<0A16976CAFCF2F4BAF285B5543FF241D>]/Index[751 27]/Info 750 0 R/Length 99/Prev 566604/Root 752 0 R/Size 778/Type/XRef/W[1 3 1]>>stream To address this, the ARRC, the International Swaps and Derivatives Association (ISDA), and other market participants have recommended a variety of options, all of which reduce the volatility otherwise associated with a daily rate, for calculating SOFR over a given interest period. (The entire conventions document is a mere five pages, so it is an easy read for those that want more detail.). If only focused on a loan portfolio, Term SOFR will (likely) always be lower, but that is why the SOFR Adjustment is there. SOFR benefits from the ARRCs support and the CFTCs SOFR First best practices, which should promote the growth on a SOFR swaps market. This is a simple interest calculation. This variation is also a form of compounded SOFR in arrears and is the sum of (i) the Adjusted Reference Rate and (ii) the Spread Adjustment, each for the relevant LIBOR tenor. hbbd``b`$g! Lastly, if SOFR swaps have a clearing requirement, and BSBY swaps are never cleared, this could greatly impact the market too. The Center for Microeconomic Data offers wide-ranging data and analysis on the finances and economic expectations of U.S. households. We discuss what market events led to the current state, provide a comparison of the leading Chathams update on the LIBOR transition, summarizing recent news, transaction activity, and upcoming deadlines to help you stay current as the market transitions away from LIBOR. SOFR Average can also be used in arrears. Overall, this should be top-of-mind for Lenders to determine how this mismatch will be addressed. Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. 2023 Chatham Financial. So, rather than constantly refer to Credit Sensitive Rates, I am sticking to BSBY in the event there are unique nuances to this rate. The mission of the Applied Macroeconomics and Econometrics Center (AMEC) is to provide intellectual leadership in the central banking community in the fields of macro and applied econometrics. SOFR is also manipulated by the Federal Reserve, so in times of stress the Fed can force this rate to drop and keep the rate there. Learn more by reading our strategy. Compound interest keeps track of the accumulated interest owed but not yet paid. July 22, 2021 - by Meredith Coffey. The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. Banks have since started issuing debt and selling hedges based on Term SOFR. When a CMBS loan is originated, its common to then securitize that loan, which is the conversion A slightly irreverent take on interest rate markets and the economy. Each business day, the New York Fed publishes the SOFR on the New York Fed website at approximately 8:00 a.m. Home / News & Resources / News / Understanding SOFR. Note that specials are repos for specific-issue collateral, which take place at cash-lending rates below those for general collateral repos because cash providers are willing to accept a lesser return on their cash in order to obtain a particular security. The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality. Our primary objective is to maintain a safe and competitive U.S. and global banking system. There are various SOFR rates/calculation methodologies which often leads to confusion. Tranche B Term Loan as defined in Section 2.1. On July 21, the ARRC released recommended conventions for forward looking Term SOFR (and SOFR Averages in Advance) for syndicated and bilateral business loans. Ed's practice is focused on swaps, derivatives, general corporate matters, and advising clients on various types of debt and equity capital market activities (e.g., security private placements, loans and revolving credit As government authorities around the world conduct overlapping investigations and bring parallel proceedings in evolving regulatory environments, companies face challenging regulatory and criminal enforcement dynamics. There will be a mismatch here. We help keep our clients up to date in these fast-moving areas and to serve as a thought leader. For further information, please visit chathamfinancial.com/legal-notices. At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. This is because Term SOFR is a risk-free rate in comparison to LIBOR which inherently includes the credit risk of the lender along with the duration risk. Compounded SOFR in arrears and Daily Simple SOFR may still be used by borrowers and lenders if they choose. Conversely, USD LIBOR relies primarily on expert judgment of the LIBOR panels submissions to calculate this rate. Not all end-users make widgets. With the different forms of SOFR rates in place i.e. Learn how to submit it. Do you have a Freedom of Information request? And thats (mostly) it for the Term SOFR conventions! SOFR is based on the U.S. Treasury Repo (repurchase) market which is a deep and liquid market with over $900 billion1 in average daily . Since Term SOFR is based on implied market expectations, its forward curve is effectively the same as compounded SOFR, so we dont list separate curves. The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry. At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. hm1l)djkq/R Xwe7o${',$3T@r@.B$(#X|"(=N5Tndq4j~*?Ck7o{c[;2kiitUXmEoY>| pMK?7M\s?U?f-YzXwkA;gc,d>"i|Csre_0{ LY`B0L>0p|^/Pce3);3k?%g6,$h-t,\ t$)"Hef+y?.9)H*sYH 7? on 30-, 90 -, or 180- Day SOFR Averages but can use the SOFR Index. The Secured Overnight Financing Rate or SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. What then for new or existing LIBOR loans that mature after the end of 2021 . 1 There are four different types of SOFR indices, all with different administrators, licensing requirements and calculations: Daily Simple SOFR, Daily Compounded SOFR, CME Term SOFR (forward looking), and SOFR Averages (backward looking). The distribution of risk across the curve in SOFR has been fairly consistent since the middle of last year. In addition, on July 29, 2021, the ARRC formally recommended the CME Group's forward looking 1-month, . Also, noted further below, maybe Dealers will not hedge a BSBY swap differently than a Term SOFR i.e., both Borrower swaps are priced based on the Fixed Rate in the Dealer-to-Dealer SOFR Market? What Is SOFR? For example, term SOFR is a period-specific forward-looking term rate that is published for periods of 1, 3, 6 or 12 months. endstream endobj 2619 0 obj <>stream Need to file a report with the New York Fed? However, it is still uncertain what liquidity will look like in the Dealer-to-Dealer Market, which impacts pricing. The overnight financing part of its name references how SOFR sets rates for. Downloads. Term SOFR is an attractive replacement for USD LIBOR because, like LIBOR, Term SOFR allows borrowers and lenders to know the benchmark interest rate on a loan at the beginning (as opposed to near the end) of each interest period by simply looking at the relevant Bloomberg/Reuters page. Is that delta enough to make a difference to a Borrower? As discussed in the User's Guide to SOFR, although compound interest will more accurately reflect the time value of money and will match the payment structure in derivatives and debt Chatham's U.S. market data includes daily SOFR and SOFR/Term SOFR swap rates. This index is calculated and published by Bloomberg under ticker and is being used as ISDAs replacement for LIBOR based hedges. The US secondary loan market hit its first speed bump of the year in late February. Maybe, if Borrowers notice that, traditionally, Term SOFR is overestimating Daily Simple SOFR, then Borrowers will move towards Daily Simple SOFR? However, some market constituents (like syndicated loan lenders/borrowers) may prefer having a forward looking term rate. the 'Daily Simple SOFR in Arrears', 'Daily Compounded SOFR in Arrears', 'SOFR Term Rates', and 'SOFR Averages (Applied in Advance)', ARRC has published its recommended conventions for both new loans that use SOFR, and for legacy loans that fall back from LIBOR to SOFR upon the cessation of LIBOR. The Term SOFR Rate: CME Term SOFR is the ARRC-recommended Term SOFR rate; it is available in 1M, 3M and 6M tenors via CME DataMine, CMEs Market Data Platform (MDP), and data redistribution partners such as Bloomberg and Refinitiv. Share this Term SOFR, USD LIBOR, and Treasury Forward Curves on LinkedIn, Share this Term SOFR, USD LIBOR, and Treasury Forward Curves on Twitter, Email this Term SOFR, USD LIBOR, and Treasury Forward Curves, Print this Term SOFR, USD LIBOR, and Treasury Forward Curves, Please read and agree to the Privacy Policy, USD LIBOR transition: credit-sensitive fallback rates, General Collateral Finance (GCF) repurchase agreements transaction data. Overall, the more I look and think about the two rates, it seems like a bank is best positioned if it has both SOFR and BSBY exposure. In past emails, I have talked about market shocks where SOFR drops below the cost of funding, but it should also be noted that SOFR is not so much a rate purely based on free market activities, but is one that the Fed can manipulate and has before (HERE). For more information on the SOFR Averages and Indexs publication schedule and methodology, see Additional Information about Reference Rates Administered by the New York Fed. How SOFR, the benchmark rate chosen by the ARRC to replace USD LIBOR, works and what drives its movements. When in doubt, please reach out and well be happy to assist. ^WG#D~?SMEEX#TC_/=@~ 3 0 0 0 0 0 2"2"YtV8+JgYtV8+J`H}bs14a`.u0 ln In contrast, because Term SOFR is known in advance of the interest period just like LIBOR today the Term SOFR loan conventions are very similar to LIBOR loan conventions. SOFR Index is based on the same calculation methodology as SOFR Average, so calculating the rate using the same start and end dates as SOFR Average should produce materially similar results. Term SOFR constitutes forward-looking estimates of overnight SOFR over tenors of one month, three months, six months and twelve months. Term SOFR is a proactive rate, meaning it moves in anticipation of a Fed hike. The following conventions relate to using SOFR in arrears (Daily Simple SOFR and SOFR Compounded in Arrears) for business loans. Transactions in over-the-counter derivatives (or swaps) have significant risks, including, but not limited to, substantial risk of loss. With talk of various credit-sensitive alternatives to USD LIBOR still common, weve prepared an overview of some of the leading credit-sensitive alternative benchmarks (e.g., BSBY, AMERIBOR, et al.). But at the same time, it would also lag Term SOFR in a decreasing rate environment. hb```f``jf`a`z @1V 0;C CDk P%uf qGsGRGCx||`sQ(x11KV,,,B,YLq 2f;O2$ The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.