This October, issuance of the Secured Overnight Finance Rate (SOFR), LIBOR’s planned replacement, dropped to $24.5 billion compared to August’s $56.1 billion total issuance. This decline comes as September’s volatility in short-term cash markets caused the Fed to intervene. Still, as the debate over the SOFR’s potential continues, many market participants are not too concerned with the SOFR volatility. For example, Toyota Motor Credit Corp purchased $1.5 billion of SOFR-linked debt in early October. “We view the recent volatility in the repo market as a manageable risk,” Adam Stam, Toyota’s national manager of secured funding, said in an emailed statement.

Read more via the Wall Street Journal.