Price discovery in US money market benchmarks: LIBOR vs. SOFR

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 204
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This note evaluates the price discovery contribution of the chosen successor to LIBOR in the US, i.e., the Secured Overnight Funding Rate (SOFR), using well-established methodologies in the empirical literature. Even though the transition away from LIBOR is supposed to enhance the transparency of benchmark rates, we show that LIBOR still dominates, albeit at a declining pace, the price discovery process in the US money market interest rates.

Technical Details

RePEc Handle
repec:eee:ecolet:v:204:y:2021:i:c:s0165176521001592
Journal Field
General
Author Count
1
Added to Database
2026-01-25