FYI: Imagine that the S&P 500 index had existed for a year, but most investors benchmarked their performance against the outdated Dow Jones Industrial Average. That’s essentially what is happening in fixed-income and money markets right now.
Bond investors are trying to transition a gross $200 trillion of derivatives, loans, mortgages, and floating-rate bonds from a flawed old interest-interest rate benchmark to a better, updated one.
Regards,
Ted
https://www.barrons.com/articles/wells-fargo-sofr-bond-libor-1538441056
