The new gauge replaces the Singapore dollar swap offer rate, known as SOR. It got computed using Libor, which is being published for the last time on Friday.
Singapore’s financial markets have rapidly switched to a new lending benchmark as the city-state joins the world in saying goodbye to the discredited London interbank offered rate.
The outstanding value of index swaps pegged to the Singapore Overnight Rate Average — or SORA — climbed to almost US$2 trillion at the end of May, more than 60% higher than in June 2022, data from clearing-house LCH show. For loans, the total outstanding climbed to $171 billion in December, according to the local banking association.
