Spat over Toyota deal stalls vote on easing term SOFR curbs
ARRC concerned by use of forward rate in securitisations, stands firm on swaps restrictions
A proposal to expand the use of a term version of the secured overnight financing rate (SOFR) in derivatives appears to have been shelved, after use of the benchmark in a recent securitisation from Toyota drew an angry response from the Federal Reserve-backed group tasked with steering US markets away from Libor.
The Alternative Reference Rates Committee (ARRC) was expected to recommend a limited expansion of term SOFR use in derivatives at its meeting on November 9. The proposed change to the
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