Issuance of SOFR-Linked U.S. Agency Debt Skyrocketed in March

U.S. agency debt issuers provided a boost in March for the benchmark tagged as dollar Libor’s eventual replacement.

Weaning global finance off Libor by the end of next year, when its regulator will stop compelling banks to submit the data it’s calculated from, was an enormous challenge even before the market mayhem caused by the coronavirus. In the months leading up to the pandemic, bond issuers had shied away from issuing SOFR-linked securities, creating an obstacle to a smooth transition. Signs of life in agency issuance may help assuage such concerns.

Sales of U.S. agency notes tied to the Secured ...