With all the regulator and market focus on SOFR as the LIBOR
replacement of choice, it's easy to forget that there are other
replacement rates vying for market attention. We've written
about
Ameribor and highlighted some of the
recent developments in its adoption. For the most part,
support for Ameribor has come from smaller Main Street banks
looking for a credit-sensitive rate that more closely matches the
unsecured basis on which they borrow funds.
On October 15, 2020, Bloomberg threw its hat into the ring with
its Bloomberg Short Term Bank Yield
Index (BSBY). After a couple of months of publishing the
rate on an indicative basis, Bloomberg launched the rate on
January 20, 2021, and announced in early March that the rate is
available for use as a replacement benchmark rate. Read on our
recently published
Alert to learn more about BSBY and recent developments relating
to the rate.
