SOFR is a 'secured rate' while the latter is not. Therefore, I would assume a 1y SOFR swap to trade at a lower par rate than a 1y fed funds overnight index swap.
Any insights would be greatly appreciated.
Thanks.
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Sign up to join this communitySOFR is a 'secured rate' while the latter is not. Therefore, I would assume a 1y SOFR swap to trade at a lower par rate than a 1y fed funds overnight index swap.
Any insights would be greatly appreciated.
Thanks.