AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
The Fed's Transition to Sofer
Sofer is going to be the replacement for LIBOR today, but probably one day effort as well. The reference rate that they created was called SOFR, and that is an overnight repo rate based on Treasury collateral. It's a market-based rate; you can't get a very low post-GFC interest rate without manipulating it. You can see this from the Fed has now completely lost control of its borrowing tools.