3.22.21
The cessation of LIBOR continues within the private-label residential mortgage-backed securities market (RMBS) with the issuance of two new floating rate transactions tethered to the Secured Overnight Financing Rate (SOFR) this month. Rating agency sources say they are the first HELOC and MLI deals to opt for SOFR-benchmarked bonds in the private MBS space. SOFR issuances are only expected to increase as regulators reiterate that banks should cease LIBOR-based issuances by year-end.