America's Libor Alternative Is Gaining Traction on Wall Street
- Issuers have sold more than $9 billion of SOFR-linked debt
- Yet tepid futures trading shows new benchmark has a ways to go
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After some early struggles, America’s Libor alternative appears to be finding its footing.
Since the debut of the Secured Overnight Financing Rate almost six months ago, futures have launched in Chicago, swaps are being cleared in London and about half-a-dozen issuers have sold debt linked to the nascent benchmark. Measured against the Alternative Reference Rates Committee’s transition plan, efforts to develop SOFR as a viable replacement for the scandal-tainted London interbank offered rate appear to be proceeding ahead of schedule.