Embracing Credit-Sensitive Rates: Potential Risks to Financial Markets
Adopting Credit-Sensitive Rates Could Pose Great Risks to Financial Markets The financial market has moved from LIBOR to alternative interest-rate benchmarks, such as SOFR. Credit-sensitive rates, which are now becoming increasingly popular, carry greater risks than SOFR and other “risk-free rates” and must be used with great care. If not, United States legislators might need […]