You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more
Did you hear that? That was the sound of $80 trillion in derivatives changing benchmarks. SOFR replaced the effective federal funds rate as the valuation metric for US interest rate swaps starting last weekend: https://www.bloombergquint.com/gadfly/-big-bang-shift-to-sofr-away-from-libor-shouldn-t-scare-anyone …pic.twitter.com/8SbOeA2lTU
The article argues the change shouldn't be scary for most - clearinghouses are managing the transition to SOFR well. Europe moved benchmarks from LIBOR to ESTR in late July:https://www.bloomberg.com/news/articles/2020-07-22/banks-scramble-to-cut-derivatives-losses-on-eve-of-market-reset …
The transition is a scary topic for some.
First, for LIBOR administrator $ICE, its benchmark will be fully obsolete by the end of 2021.
the new benchmark ESTR (Euro Short Term Rate) is administered by the ECB, taking some power & revenue away from the exchange.
LIBOR used to be administered by the British Banker's Association, but after banks were found to have manipulated the rate, ICE took it over. Now, central banks will own the calculation. The ECB owns ESTR and the Fed owns SOFR:pic.twitter.com/8eXHufdy11
Here's an interesting presentation $CME did on client readiness & the mechanics of the SOFR transition:
https://www.cmegroup.com/trading/interest-rates/files/discounting-transition-proposal-aug-2020.pdf?utm_source=twitter&utm_medium=organic_social&utm_campaign=sofrdiscounting …
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
