Barclays Plc has become the first bank to issue commercial paper tied to the new benchmark that's been designed to succeed LIBOR in the dollar funding market.
The British lender on Friday sold US$525 million of the short-term debt, which will be linked to the new secured overnight financing rate, or SOFR, according to a Barclays spokeswoman. The borrowings took place via its flagship asset-backed commercial paper conduit, Sheffield Receivables Corp.
“Investor response was immediate and fairly broad across different types of investors,” Joe Muscari, head of securitized portfolio management at Barclays, said about the bank's commercial paper deal. “Our support of SOFR with these issuances is just a recognition that this is the direction the industry is headed.”
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
