It is now very clear that UK and US regulators want market participants to transition away from Libor by its phase-out at the end of 2021, predominantly because it is a not based on transactions whereas replacements SOFR and Sonia are.

Despite the US being the centre of global finance a surprising amount of action is happening in the UK’s Sonia market. It feels somehow appropriate that new issuance of Sonia-linked bonds has set a blistering pace; an endorsement that the sterling market’s designated new risk-free rate (RFR) is ready to replace...Read more