Recently I have been going through a lot of documents for SOFR (Secured Overnight Financing Rate) as there is a SOFR implementation in my organization. I am not able to understand how SOFR term structure will be build. SOFR is published only for 1 day and there are only 20 SOFR futures traded.
How will be the forecasting of cash flows after 5 years happen? What underlyings will be used to do bootstrapping for generating a SOFR EOD term structure?