Analysis: As Sun Sets On LIBOR, Its Successor Rate May Heighten Bank Risks

Analysis: As Sun Sets On LIBOR, Its Successor Rate May Heighten Bank Risks

Hoover Institution | 23/05/2023

Analysis: As Sun Sets On LIBOR, Its Successor Rate May Heighten Bank Risks zlotx5 Tue, 05/23/2023 - 11:00 quoting Darrell Duffie Off Mon, 05/22/2023 - 11:39Hoover Daily Report Tuesday, May 23, 2023

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"Banks are going to be more exposed with SOFR lines of revolving credit because borrowers, in a crisis, will be able to borrow at a very low rate when SOFR goes down," said Darrell Duffie, professor of finance at the Stanford Graduate School of Business and a co-author of the New York Fed study.

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