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I think it's a good question. But just remember a few nuances: They both do have futures, so you can get exposure to future rates. For example, you can trade June Eurodollars now as well as June SOFR futures. They both do have credit risk. Just less with SOFR since it is collateralized. Another nuance. Sometimes there are collateral scarcities or over-...


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You are correct. SOFR is an overnight, secured lending rate. It does not have an unsecured credit risk element , and it does not have a term premium. As a result, it is expected to behave differently to 3month libor in a credit crisis. However it has advantages: it is based on a large volume of transactions and is therefore much harder to manipulate ...


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