IOSCO-aligned credit spread reference benchmarks for the Secured Overnight Financing Rate which enhance the efficiency, transparency, and stability of U.S. financial markets. The AXI & FXI Brochure will be updated over time.
In 2019, a collection of ten large American regional banks wrote to US bank regulators expressing their support for SOFR and requesting the creation of a SOFR based lending framework that includes a credit risk premium. A credit sensitive element enables banks to avoid mismatches between their assets and liabilities in times of market stress and promotes their ability to “extend credit during both good times and bad.” The USD Across-the-Curve Credit Spread Index (AXI) and its extension the USD Financial Conditions Credit Spread Index (FXI) were developed in 2021 and launched in July 2022 to satisfy this request. The AXI & FXI Brochure is a user friendly document that provides an overview of AXO & FXI, shows their historical performance, highlights use cases and covers financial stability considerations as well as IOSCO alignment.
Download the AXI & FXI Brochure here.
