/SWAPS: TD analysts led by Priya Misra......>

US TSYS: /SWAPS: TD analysts led by Priya Misra said that "global bank

regulators are clearly signaling a need to transition away from using Libor as

the risk-free benchmark. There is no guarantee that Libor will be a reliable

benchmark after 2021. The debate is global in nature, and countries have already

chosen various alternative rates to replace Libor and have laid out somewhat

varying timelines for the transition."

- They add that "US regulators have picked SOFR as the alternative reference

rate, and the NY Fed will begin publishing the rate in Q2 2018. SOFR is only an

overnight rate, however, and term rates will ultimately be derived from the

overnight rate. Over the past 3 years, SOFR has averaged about 4bp below EFFR."