MetLife’s recently executed $250m SOFR-linked repo trade was 5-10bps cheaper than a regular repo trade, according to Jason Manske, the insurer’s chief hedging officer. The deal is also more attractive for MetLife because it allows them to hedge against future losses in their own portfolio, rather than having to rely on other insurers or banks that are less likely to be
MetLife’s recently executed $250m SOFR-linked repo trade was 5-10bps cheaper than a regular repo trade, according to Jason Manske, the insurer’s chief hedging officer. Manske said that technology issues have hindered the use of the RFR in derivatives transactions.