Well, it looks like it’s July and people are still using LIBOR. I first heard about this in 2018 or 2019. I guess it’s going to take a long time before we start seeing alternative interest rate standards to LIBOR. I remember when the rigging scandal broke out. What year was that again?
Hmm, on my calendar it’s been August for several days now, but I otherwise agree with your sentiment. SOFR is just an awkward choice for a replacement rate, since it is likely to be negatively correlated with bank funding costs during periods of stress. But, this is probably one of these correlation equilibrium stories where it is ultimately better to agree on a bad solution than to disagree and not reach a solution at all. We shall see. The stables definitely need a river or something to clean out the muck…