As Libor Goes Away, U.S. Replacement Makes a Big Trader Uneasy
- SOFR is not a great hedge, according to DRW’s Don Wilson
- ‘The time it really falls apart is in a crisis,’ he said
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Dollar Libor’s fate is set: It will no longer be available for new loans and other products starting on Jan. 1, mostly replaced by the benchmark that regulators want.
But that doesn’t mean everybody loves the Secured Overnight Financing Rate, the leading U.S. alternative.