Differences Between Lenders utilizing Libor, SOFR, and 10-year Treasury for Quotes
Hi everyone.

I worked an internship on the debt side (LifeCo) this last summer in which we utilized the Bloomberg Fair Value as a base for building quotes. However, I know other LifeCo's, banks and institutional lenders that use either Libor or SOFR. 

Can someone please help me understand why different firms use different references to build its quotes?
[{"id": "ipedil4", "text": "SOFR is brand new and on the way in.  LIBOR is on the way out.  Bloomberg index i think is an alternative to SOFR.\n\nAll pretty darn similar though...  It used to all be LIBOR but after the scandal I think the industry is just trying to figure out where its going.\n\nI think some people just like getting quotes in the form of the 10yr spread but those quotes don't hold much in my experience so it's just a quick test to see how much risk premium is in the quote.", "replies": [{"id": "ipiwd7b", "text": "What scandal occurred with LIBOR?", "replies": [{"id": "ipixiv6", "text": "Collusion to rig it on a global scale\n\nhttps://en.wikipedia.org/wiki/Libor\\_scandal", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ipeyj37", "text": "Most banks can\u2019t lend loans under LIBOR after 1-1-2022. Existing floating rate loans primarily got converted to SOFR (term vs compounded). TSy / Sofr swap is used for fixed rate loans.\n\nEdit: most US banks. SOFR is a US index.", "replies": [], "depth": 1}, {"id": "ipflh4g", "text": "For starters you are mixing loan terms. For short term loans you would likely use SoFR or formerly Libor that is mainly being replaced by SOFR after manipulation was proven after 2008. SOFR is based on real transactions vs verbal offers and not real transactions in Libor that was part of the Libor manipulation.\n\nFor longer term loans you are using longer term treasury or swap rates. I.E 10 year Treasury for 10 year term mortgages.\n\nI haven't used Bloomberg leveling so I won't speculate on it's use.", "replies": [], "depth": 1}, {"id": "ipfndm4", "text": "LIBOR / SOFR for floaters.\n\n10 year UST for fixed rate.", "replies": [{"id": "ipijf1f", "text": "Why would you use a 10y treasury for a fixed rate loan?... This is an index and any index loan is a floater.", "replies": [{"id": "ipimegv", "text": "Our firm does this as well. I believe we use the 10 yr on fixed so we compare our returns to bonds. If I had to guess, I\u2019d say this more common with LifeCos", "replies": [], "depth": 3}, {"id": "ipki7fk", "text": "Fixed rate deals typically use UST that matches term. Some use applicable term swaps (CMBS). Floaters use SOFR.", "replies": [], "depth": 3}, {"id": "ipotj5d", "text": "A fixed rate loan with a 10 year term will often be quoted as 10yr treasury rate + spread. You lock the rate at some point, but that\u2019s how it\u2019s quoted.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ipftc37", "text": "Lenders leverage and hedge their exposure with the same underlying index. If a lender quotes SOFR + 300bps then they're probably financing at SOFR or a similar index as well.", "replies": [], "depth": 1}, {"id": "iqarq3u", "text": "Every deal I have has converted to SOFR this year that was LIBOR. Even construction deals going back a few years. Everyone I know is paying more under SOFR even though when drafting docs it was supposed to be as neutral as possible.", "replies": [], "depth": 1}]