German carmaker BMW has broken new ground in its swap for the fixed-rate tranches of a recent bond issue.
The $1.25 billion swap is thought by those who worked on it to be the biggest yet linked to the secured overnight financing rate (Sofr), one of the risk-free rates (RFRs) that are gradually being adopted by financial markets as alternatives to Libor, which is being phased out.
The underlying fixed-rate bonds were a March 31 sale by BMW US Capital of $750 million of 0.8%
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