An “improved LIBOR" should coexist with SOFR , according to ICE Benchmark Administration President Timothy Bowler , who suggests separate benchmarks are needed for credit and interest-rate risk. Financial regulators around the world agree the London interbank offered rate, a widely used lending benchmark that is prone to manipulation, has to go. SOFR Yield Index—like LIBOR but designed to be more accurate and harder to exploit—is yet to gain regulatory approval; meanwhile the US Treasury is continues to push SOFR adoption. Bowler and Bowler , Bowler 's pursuit of a LIBOR-like benchmark stemmed from financial crisis experience. While some want to make Fed the single standard reference for contracts, ICE Index backers cite a mismatch between SOFR and the real cost of borrowing, particularly during market stress, when banks are reluctant to lend.
An “improved LIBOR" should coexist with SOFR , according to ICE Benchmark Administration President Timothy Bowler , who suggests separate benchmarks are needed for credit and interest-rate risk. SOFR Yield Index—like LIBOR but designed to be more accurate and harder to exploit—is yet to gain regulatory approval; meanwhile the US Treasury is continues to push SOFR adoption. Bowler and Bowler , Bowler 's pursuit of a LIBOR-like benchmark stemmed from financial crisis experience. While some want to make Fed the single standard reference for contracts, ICE Index backers cite a mismatch between SOFR and the real cost of borrowing, particularly during market stress, when banks are reluctant to lend.