The largest Swiss bank Credit Suisse issued debt securities tied to SOFR (the Secured Overnight Financing Rate) chosen to replace the previously used LIBOR (the London Interbank Offered Rate). Experts emphasize that it is the first bank to adopt such a decision.
One of the departments of the financial institution placed a $100-million six-month certificate of deposit, the rate on which was 35 basis points higher than SOFR.
According to experts, the Swiss bank became the third financial institution to issue debt tied to SOFR.
Recall that in April this year, the Federal Reserve Bank of New York introduced three new interest rates, including SOFR. Experts note that it can replace LIBOR over time.
