Edward Ivey quoted in the American Banker: RIP BSBY: Bloomberg to shut down its lagging Libor replacement
Moore & Van Allen (MVA) Head of Swaps & Derivatives Edward Ivey was quoted in the American Banker article, “RIP BSBY: Bloomberg to shut down its lagging Libor replacement” published on November 27. Edward states, “Criticisms of BSBY added a feeling of "risk and grayness" over its usage, making it even tougher to gain momentum. BSBY also faced other challenges. Early in the transition away from Libor, the SOFR benchmark lacked a forward-looking term option that gave the borrower a clear number they'd pay for the next 30 days or another period. Borrowers seeking a forward-looking rate could find one in BSBY, which helped its proponents to make their case. But once a "term SOFR" option became available, the case for BSBY got a bit weaker.”
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