Tag: Loan Index

Loan Index Update – Libor, SOFR, and BYI

The Future of Libor

Earlier this month, The Federal Reserve released a framework that would allow the creation of a term SOFR market based on SOFR futures. One of our milestone steps that were required before CenterState switches over to the Secured Overnight Financing Rate (SOFR) was a robust term market and creating a framework was the first step. In this article, we give an update on that SOFR term market, discuss the latest with the BYI Index and provide banks with an updated timetable.

 

SOFR Term

Why Your Bank Should Use Libor Instead of Prime

Using Libor For Your Bank and Not Prime

Every community banker is familiar with the Prime rate, and most community banks do not have many loans or deposits tied to LIBOR.  The question comes up – should you have more LIBOR loans? The answer is a clear yes and while LIBOR is slightly harder to explain to some borrowers, there are 6 good reasons to switch from Prime to LIBOR.

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