EIB trade sparks hopes of Sofr standardisation

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By Mike Turner
11 Jun 2019

The European Investment Bank printed a $1bn three year floating rate note linked to the secured overnight financing rate (Sofr) with a coupon structure that mirrors Sonia this week, as the market still tries to find a standard method for the dollar Libor replacement.

Triple-A rated EIB printed the floater on Tuesday 1bp inside initial price thoughts at Sofr plus 29bp.

Sofr trades have not been as popular as their sterling Sonia-linked equivalents, as Sofr issuers have used five different ways of calculating the coupon.

Two big issues arise from this — investors struggle ...

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