In April 2018, the Federal Reserve released a new U.S. benchmark rate called the Secured Overnight Financing Rate, or SOFR. The SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. Over the past 30 days, the SOFR has generally ranged between 1.90% … [Read more...] about 7.20.18: What Will Replace the LIBOR Index?
After trading in a range of 1.85%-2.25% since January 2015, the 10-year Swap Rate began a steady ascent in May that accelerated in June. The first week of June saw the 10-year Swap Rate rise from 2.23% on Monday to 2.48% on Friday, leaving borrowers shell-shocked. The market worsened the week of … [Read more...] about 6.12.15: 10-Year Swap Rate (Swap) Index Breaks 2.5%; Borrowers Distressed
Although 10-year Swaps and Treasury rates fell Friday after a softer-than-expected U.S. jobs report quelled market expectations that the Federal Reserve will imminently roll back its monetary stimulus, the Swap Index used to set CMBS loan rates broke the 3% mark on August 19; it has traded in a … [Read more...] about 9.6.13: 10-Year Swap Rate (Swap) Index Breaks 3%; Treasury Not Far Behind
Markit, a firm that provides credit default swap information and valuation services, is putting the finishing touches on a new total return swap index, dubbed TRX.2, designed to help CMBS lenders hedge their warehoused loans. With the recent volatility in CMBS spreads, securitization shops are … [Read more...] about 8.8.11: Markit to Introduce New Index to Hedge CMBS