An overview of FTSE USD IBOR Cash Fallbacks
- The FTSE USD IBOR Cash Fallbacks incorporate a risk-free rate, which is quantified by various forms of the Secured Overnight Financing Rate (SOFR), alongside a fixed spread adjustment that reflects the average disparity between USD LIBOR and SOFR.
- Different markets follow their own standards, resulting in a range of fallback rates, each tailored to specific market needs.
- With the discontinuation of LIBOR, it is crucial for market participants to ensure their existing USD LIBOR-referenced contracts transition to an appropriate alternative benchmark.
KEY FACTS
FEATURES & BENEFITS
What you get with FTSE USD IBOR Cash Fallbacks
FTSE USD IBOR Cash Fallbacks include a risk-free rate, gauged by various types of Secured Overnight Financing Rate (SOFR), along with a fixed spread adjustment that reflects the average disparity between USD LIBOR and SOFR.
Various markets employ distinct conventions, resulting in multiple fallback rates instead of a singular one, each tailored for specific market needs.
With the discontinuation of LIBOR, market players need to guarantee that their existing USD LIBOR referencing contracts have an appropriate alternative benchmark.
Every legendary partnership starts with a simple note. We're excited to hear from you!
© Eulerpool Research Systems. All rights reserved.