RFRs hit Main Street as Swiss banks launch Saron mortgages
Negative rates ease path for compounded Saron home loans without lags or lookbacks
Swiss retail is getting its first taste of alternative risk-free rates (RFRs) as banks begin offering mortgages tied to Saron – Libor’s successor for Swiss franc markets. Raiffeisen Group, the country’s largest retail mortgage lender, began offering its first home loans tied to the RFR on April 16, while small regional lender Glarner Kantonalbank introduced Saron ‘rollover’ mortgages in February.
It marks a significant step in scrubbing Libor exposure from lenders’ balance sheets by the end of
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