Podcast: The Need for a Credit-Sensitive Reference Rate
AFX CEO John Shay was recently featured on the “At the Forefront: Fintech Conversations” podcast, where he was joined by Marco Macchiavelli, Assistant Professor of Finance at University of Massachusetts, Amherst for a discussion on benchmark interest rates in the overnight lending market. In the episode, Shay and Macchiavelli unpack the value of credit-sensitive rates […]
New Whitepaper Emphasizes the Benefits of Credit-Sensitive Rates
CHICAGO – September 10, 2024 – The American Financial Exchange (AFX), a self-regulated exchange that provides banks and financial institutions a marketplace for overnight unsecured interbank lending and borrowing, announced today that it has published new research in coordination with the University of Massachusetts Amherst’s Marco Macchiavelli, Assistant Professor of Finance with the Isenberg School […]
Whitepaper: AMERIBOR: A Better Credit Sensitive Reference Rate
Marco Macchiavelli, Professor of FinanceUniversity of Massachusetts Amherst, Isenberg School of Management Executive Summary. Access the whitepaper here.
A Rate for Main Street: Why Commercial Banks Urgently Need Credit-Sensitive Benchmark Interest Rates
It’s 2024. Do you know what your overnight borrowing costs are? For many regional and community banks, the answer is no – and poor regulatory guidance is a primary cause. After years of manipulation scandals, the LIBOR interest rate was thankfully officially discontinued on June 30, 2023. At last, financial institutions had an opportunity to […]
ANALYSIS: AFX sees August sell-off boosting credit sensitive rates
Post-Libor Transition, There Remain Refinements to Be Made and Risks to Be Aware of
In a report last November, the Alternative Reference Rates Committee declared success as it closed the book on supplanting the Libor benchmark in the U.S. with the Secured Overnight Financing Rate (SOFR). But it did not say that all work is complete. ARRC’s website remained open though deactivated, as the committee said that its closing report highlighted “key […]
Exchange Notification – December 21, 2023
December 21, 2023 Dear Members: As you know, AFX reserves the right to change our benchmarks from time to time at our discretion. As a result of our new leadership’s ongoing review of our Benchmarks and in response to changing market factors, management has decided to discontinue the following set of credit sensitive rate data […]
2024 Outlook & Considerations for Banking
AFX Advisor Robert Albertson offers his perspective on what lies ahead for the banking sector in 2024. A Weakening Economy Economic consensus had only recently centered on a “soft landing” with no recession and Fed rate cuts as soon as 2024. Both are premature conclusions in my view. Some are now suggesting a recession has […]
AFX Marketplace Announces Extended Trading Hours
We are pleased to announce that as of September 11, 2023, the AFX Marketplace will extend its trading hours to run from 6 am CT to 5 pm CT. The additional hour is intended to better serve Marketplace participants from coast to coast by enhancing liquidity and providing more opportunity within the market. Since our founding, […]