Eric Juzenas, a director in the Chatham Financial global regulatory solutions team, said that a hardwired approach has benefits over the long run because of the certainty and transparency it provides. Nearer term, however, it is difficult to predict how hardwired approaches will work in practice, because RFRs and spread adjustments are still being developed. Hence market participants must be wary of locking themselves into hardwired approaches that could lead to unpredictable results.
